Study Of The Automotive Industry Tax Issues

Automotive industry has became a integrated symbol of national industrial throughput and technology, and is pushing the development of various industry, like iron, machine-building, electron, rubber, glass, chemistry, petroleum and so on. Automobile is an industry, which has high complexity, strong integration and long industrial chain, also affects almost all manufacture and service industries. It brings 2.5 times income to relative industries due to its powerful domino. Automotive industry is taking the lead of economy development. So, to develop automotive industry, especially the sedan industry, is the only way to get one nation strong in my opinion.Revenue is a main incoming method of national public finance. It makes the national economy well running, by means of increasing or decreasing the income and property of taxpayer. High or low tax rate, amount of deduction before tax, fast or slow depreciative speed, tax favorable degree etc, all of these are the signals for the investors to increase or decrease their investment. Revenue can only comply with market's requirement, on condition of respecting economic rule, to remedy the shortcoming of marketing system and push company to play well. Revenue can't exceeding value rule and solve all of economic problems.Automotive industry should be strongly developed and be regarded as a leading industry. Generally, the government will institute some tax policy in order to regulate one industry macroscopically, especially on automotive industry. So, the tax policy on automotive industry can affect its development, even the national future economy.This article is divided into three chapters:The first chapter simply depicts the process of automobile manufacture and distribution, like automobile design, production and sale. Also, this chapter analyses the processes of social reproduction and the relationship among all processes during different economical developing period. At the end of this chapter, other issues areinvolved in, such as the different tax intersperses among different steps of automobile production and sale, the principle of taxation, and the relationship among the automobile production, sale and consumption.The second chapter, some revenue issues, existing in current automotive industry are analyzed, from the point of view of taxation. Some main taxes are involved in like: Value-added tax, consumption tax, corporative income tax, fuel tax and type tax. Also, the reason of high vehicle price is mentioned in this section.The third chapter, I list some improving opinions aiming at the analyzed issues in last chapter. It depicts why the value-added tax needs to be improved and raises some improving solutions. The consumption tax is recovered to be paid by consumers themselves in consumptive field, instead of being paid by the corporations in production chain. To adjust current national corporation tax, share it between center government and local government. To unify internal and external corporate income tax, promote fairly competition. And I raise some proposals and relative solutions about fuel tax's initiation. At the end of this chapter, regarding of WTO, through citing some data, writer analyze the tariff-changing trend and put forward some countermeasures that should be adopted by our domestic corporations in the future.