An Analysis On The Economic Effect Of Resource Tax Reform

The formal introduction of resource tax in China has already gone through more than 20 years. In the early stages of the introduction of resource taxes, it had played an important role in adjusting the differential gains and increasing the local tax revenue. At present, China's rapid economic development is at the cost of high investment high consumption of resources. The amazing waste of resources and energy resulted in the inefficient use of resources. The value of resources cannot be fully reflected. Especially in recent years, the conflict between the increasing demand on natural resources and the shortage of resources supply is becoming extremely fierce. Low price of resource and energy resulted the waste of resources and a shortage of energy which severely constraints on China's growing economic development. Because of narrow tax scope,unreasonable taxable basis,low amount of tax and other issues, tax resources cannot bring its resources and the environment protecting functions into full play. Resources tax is unable to adapt to the development of the current economic situation, so a tax reform is imperative.According to the requirement of building resource-saving society, China "11th Five-Year Plan" proposed "reform of resource tax system". Due to the impact of international and domestic economic situation, resource tax reform was postponed. In 2010, resource tax reform carried out in Xinjiang which is the prelude to full-scale reform. After picking up the theoretical foundation of resource tax, the economic effect of present tax reform is analyzed at the beginning of this paper. The result of analysis indicate that the current taxation system is deficiency, because its narrow tax basement, unreasonable tax collecting and the unreasoned concept of imperfect taxation. Scholars have different point of view on the reform in Xinjiang, so learned from them, this paper point out the remaining problems in reform process. Then it focused on the analysis of micro-level resource tax reform influence on enterprises and residents, reflecting its function of resource conservation and environmental protection. This reform just involved the way how resources tax is collected. It has not yet touched upon more nature resources. So reform was not complete. It also needs a wider range of deeper reforms. In order to better play the main resources of taxation on economic regulation and environmental protection, the paper proposes several suggestions for further reform to improve the expected tax impact we analyzed before.Resource tax reform should be based on economic development, the level of domestic inflation and the capacity of businesses and residents. It should be carried out step by step. At the same time, we should summarize experiences, draw lessons from the reform at every stage. According to this, we can pave the way for a comprehensive resource tax reform. In short, a perfect resource tax system can balance and restrict the use of scarce resources and associated environmental issues through resource reconfiguration. After that, the resource tax can improve resource utilization and enable enterprise use resource in a reasonable and effective way. At last, it will alleviate the conflict between the growing scarcity of current resources and economic development, thus promoting the comprehensive implementation of the concept of scientific development and environmentally-friendly society.