Value Added Tax Shifting And Tax System Perfecting Analysis

Value-added tax is a important tax type, besides it is a crucial tool for money-raising and economic-regulating. In China, the tax authority began to levy VAT in 1979, now it becomes a main source of the tax revenue. In the year of 2010, the amount of VAT accounted for 29% in the total tax revenue. In addtion, it easily happens tax shifting in VAT. While one country using the VAT as a tool to regulate the economy, it may violate the tax policy's purpose because of the tax shifting. Therefore, in the first section, this study makes a theoretical analysis on the shifting of VAT in the six economic departments; second, based on the theoretical analysis, this study makes a empirical analysis of tax shifting. The purpose of this study is to further develop and improve the theory of tax shifting and tax incidence and make recommendations on better using the tax tool for economy regulating.The thesis is divided into six chapters as follows:Chapter 1, Introduction.This section introduces the background of the research, the conception of the tax shifting and tax incidence, the structure and the research method of the thesis, the innovation and unsolved issues. Chapter 2, literature review. This section first introduces the development of the tax shifting theory, then presents the research in China. Thirdly, on the basis of the research, the writer makes comments. Chapter 3, the analysis of determinants of VAT shifting, the feature of the VAT shifting and the society effects of the VAT shifting. Chapter 4, on the basis of theoretical analysis, the paper concretely analyzes the six national economy in China and makes conlusion:in the agriculture department, it is easily to transfer in, but difficult to turn out, nominal tax burden is zero, actual tax burden is heavier; in the food manufacturing sector, nominal tax burden is higher than the actual tax burden, it is difficult to turn in; In the textile, sewing and leather products manufacturing department, tax burden is easy to turn out and turn in; in the building materials department and non-metallic minerals department, the actual tax burden is lower than nominal tax burden; in the electric power, heat and water production and supply industry and coking, gas and oil processing department, the tax burden can be transferred in and out, but mainly be transferred in. Chapter 5 by using the related data in China statistical yearbook and Chinese price yearbook 2005, by using tax burden statistical models of agriculture in our country, the study makes the VAT tax shifting empirical analysis of six departments. Chapter 6 based on the theoretical and empirical analysis, the study puts forward the suggestions: reduce value-added tax proportion; refine value-added tax rate; give tax subsidies to the department which be imposed on heavier actual tax burden, change tax shifting conditions of some departments.