The Research On Fiscal And Taxation Policies Of Promoting The Development Of Chinese Modern Agriculture

Agriculture is the foundation of national economy, and the position and role of agriculture are increasingly valued by people with the constant development of our economy. Since2004, the Central Committee of CPC and the State department have already released "the No.1document" on agriculture every year."The No.1document" in2007pointed out definitely:Developing the modern agriculture is the initial mission in the construction of new village of socialism, and it is the inevitable request of the village work by scientific outlook on development. In March of2011, the Central Committee of CPC put forward clearly in the "12th Five-Year Plan": Accelerating the development of modern agriculture, adhere to the path of agricultural modernization with Chinese characteristics. Developing modern agriculture in our country is the problem we must face, and it also is the basic way and the direction of the agricultural development of our country. The developed countries have basically realized agricultural modernization, and their agriculture has been on the path of development-industrialization, systematism, marketization and internationalization. Comparing with developed countries, China still has a long way to go on modern agriculture.In this paper, the author particularly analyzes the connotation of modern agriculture and the role of the market and the government for developing modern agriculture. The market plays a fundamental role of regulation on the development of modern agriculture, and modern agriculture must walk along the road of marketization. But because of the existing public goods in agriculture, market may fail in the regulation of agricultural investment, and it is unable to avoid "free-rider" phenomenon. In order to make up for the inadequacy of market regulation in the process of developing modern agriculture, the government must play a leading role, adopting various policies and means of regulation. Macro-control means of agricultural economy activity mainly include means of economy, law and administrative means, and each one has its good points in developing the modern agriculture. The three means contact and complement each other and form a unified control system. In this system, because the economic means are consistent with the principles of the market economy, the activities of adjusting and controlling agricultural economy should be mainly through economic means. In all of the economic means, the fiscal and taxation policies are the most powerful economic lever of the implementation of the national macro-control and the implementation of preferential policies, and they have a major impact on the development of agriculture and they have great superiority in supporting the development of rural economy and developing modern agriculture. The author would provide a reliable theoretical basis and decision-making reference for the current fiscal and tax policy adjustment through an in-depth research of their proper role. According to the research on fiscal and taxation policies of promoting the development of Chinese modern agriculture, this paper will focus mainly on the three parts:First of all, the author makes an analysis of the current situation of Chinese agricultural policies. In China, current fiscal and taxation policies mainly include the financial investment, agricultural subsidies and agricultural tax incentives and so on. The state financial expenditure of agriculture continually increases, and the range is big. But the proportion of financial expenditure of agriculture in total financial expenditure is relatively low comparing with other countries in the world. Gross fiscal agriculture expenditure is insufficient, and the structure of fiscal expenditure of agriculture is unreasonable. The implementation of" Four Subsidies "and other agricultural subsidies increases farmers’income effectively, arouses their manufacturing enthusiasm, and stimulates grain production and the improvement of agricultural production condition. However, the ways of agricultural subsidies are unreasonable, and amount of subsidies needs to be improved. In the agriculture tax concessions, although the country has taken many direct or indirect tax preferential policies, which have greatly reduced the burden on farmers, the agriculture-related preferential tax policies still exist a lot of problems, such as lack of efficiency and fairness of preferential tax policies, cumbersome approval procedures, the unideal effect of implementation, and unclear tax policy orientation. In addition, the current rural management of finance and tax also has the flaw in China, for example, there has not been standard management on the uses of fiscal money in supporting agriculture; the tax service environment is not just as one wishes, and the tax policies are lack of publicity and transparency.Secondly, the author makes an analysis on agricultural fiscal and taxation policies of the major developed countries and their development modes of modern agriculture, and summarizes successful experience of using fiscal and taxation policies of developed countries to support the development of agriculture, providing some enlightenment for developing Chinese modern agriculture. This paper selects several representative countries, and their agricultural fiscal and taxation policies are analyzed and compared in detail. The developed countries have large support for agriculture on agricultural fiscal and taxation policies, which mainly focus on the construction of agricultural infrastructure, agricultural research, technology promotion and training system, the information service and the development of agricultural cooperative organizations and so on. They also value agriculture insurance, and provide large subsidies on the agricultural production and operation. In the aspect of agricultural tax, developed countries implement a unified urban and rural tax system, but they have special preferential tax policies about some taxes on agricultural production, some of the links as well as rural cooperatives and poor rural areas. Due to the difference of national resource conditions and historical background in different countries, their development modes of modern agriculture are different. Generally, the development modes of modern agriculture are mainly divided into three kinds:American mode of rich resources, Japanese mode of poor resource and Western Europe model of the combination of intensive production and mechanical technology. When adopting some kind of pattern, we should not only consider the development law of modern agriculture, but also combine with the actual situation in our country, seeking for a suitable development road of modern agriculture.Finally, according to the problems of agricultural fiscal and taxation policies in China, and referring to the useful experience of developing modern agriculture in developed countries, the author puts forward some advices in perfecting fiscal and taxation policies of developing Chinese modern agriculture. When formulating and improving relevant fiscal and taxation policies, the government should follow some principles:Fiscal support for agriculture needs overall consideration and highlights the key point, adhere to the basic principles of Taxation, building of a unified urban and rural tax system, keeping tax fairness. With the guidance of policies of "industry feeds back agriculture, city to support country" and the policy of giving more, taking less and loosening control, the government should continually increase strength of fiscal support for agriculture, improve the agriculture-related preferential tax mechanism, and improve the financial support system to promote the development of modern agriculture.