Analysis Of Tax's Effect On The Industry Under The New Tax Policy Context

The upgrading adjustment of industrial structure is an important issue on economic development. Since the reform and opening-up, China's economy has maintained high speed and industrial structure has changed greatly. After the reform and opening-up and several industrial structure changes, it shows distinct industrial structure trait in Sichuan province. In market economy area, tax is one of main tools that country micro-controls the market economic behavior meanwhile it plays an important role on industrial structure adjustment and upgrading. Tax adjusts industrial structure, from the perspective of matter, including not only tax amount, but also tax structure.This article emphatically analyzes the following three aspects about tax effect on the adjustment and upgrading of industrial structure:First, tax affects the primary industry, especially agricultural industry, stating that farmers overloaded tax burden before abolishing agricultural tax, however farmers still face with outside tax burden after abolishing tax; Second, tax stimulates the second industry especially industry, particularly value-added tax's incentive on Sichuan industry development, increasing companies' profits and in favor of technology investment. Yet construction industry still pays business tax. Third, tax affects the third industry. The article analyzes that at present business tax's obstacles and improvement measures on the third industry development. Through analyzing the relationship of the third industry and taxation, it illustrates taxation's positive and negative influence on industry development. And according to the tax policy's problems in the industrial developing, the article puts forward the corresponding taxation reforming measures and countermeasures.This article, through discussion, concludes that taxation's influence on industry development is different during different stages. Above all, it should earnestly alleviate the burden of farmers and after abolition of agricultural tax it should really implement favorable policies to farmers; increase support to countryside and peasants, accelerate urban and rural economic integration. For another, whereas the second industry's important strategic meanings for Sichuan province, especially the industry, we should firmly support development of the second industry, and highly support the development of high-tech industries; additionally, Sichuan is full of labor force, so we should emphatically resolve the problem of employment, thus should have appropriate consideration for the development of labor-intensive industries, in favor of social stability. Finally, put emphasis on the third industry in the national economy, reform current business tax step by step whose ultimate goal is to be brought into the VAT levy domain. Meanwhile, pay attention to modern service industry, which is the trend of industry development, with less energy consumption and high value added traits.