Research On The Fiscal And Tax Policies Of The Automobile Industry

Observing the course of development of China’s automobile industry, it’s not difficult to find out that economic development led to prosperous in the industry. And the automobile industry is playing an increasingly important role in our country’s economic growth. Since the financial crisis in2008, global automotive market by a hard impact, the growth rate of vehicle production and sales had dropped significantly. Under the force of circumstances, our government introduced a number of measures, like the automobile industry restructuring and revitalization plan, preferential vehicle purchase tax and the subsidy of "car to the countryside", to deal with the crisis. Even though recession in auto market, with support of relevant policy measures. China’s auto production and sales exceeded13million in2009,ahead of Japan and American to be the largest automobile producer around the world. So, China enhanced the status of the global automobile industry.To promote the sound development of automobile industry, Chinese government launched a series of fiscal policies encouraging"" automobile consumption. There is no doubt that the automotive industry is an important aspect in the country to establish a resource-saving and environment-friendly society strategy. Fiscal policies become indispensable to encourage research and development of energy-saving and environment-friendly vehicles, incentive technical innovation, guide domestic car consumption industry and control the vehicle volume. Therefore, study and evaluation of the fiscal policies in automotive industry is quite helpful to identify the deficiencies in existing policies and perfect them, thus protect automotive industry. So, the study has a positive theoretical and practical significance.On the basis of the status of China’s automotive development, author researches the relevant fiscal policies and put forward reasonable proposals improving these policies, combined experience in developed countries’development of automobile industry. Following is the structure and content of the paper:The first chapter is an introduction including the relevant background and significance of the topic. In this chapter, author elaborated existing research about fiscal policy of automobile industry at home and abroad.The second chapter is a general analysis of China’s automobile industry, analyzing the development status and future challenges of this industry. From studying the automotive supply and demand and other aspects of the industry’s development status, the pressures and challenges facing the development of the automotive industry is environmental negative externalities and increasingly severe energy crisis, which is an important opportunity to the development of new energy vehicles.The third chapter is the evaluation of the fiscal policy of automotive industry. In this chapter, author analyzed fiscal policy, without tax policy, and focused on technology innovation support policy, car scrapping subsidy policy, incentives of new energy vehicles, and evaluated on related financial policy system and some specific fiscal policies.The fourth chapter is the evaluation of tax policy of automotive industry. This chapter introduces the taxes related to automotive products during the transfer process; a more detailed analysis focuses on automobile consumption tax, fuel tax, vehicle purchase tax and travel tax. Tax policy evaluation is carried out in two parts. The first evaluates tax policy system of the automotive industry form the functions of the various types of taxes, the tax revenue structure, the overlap of the different types of taxes, the integrity of the tax policy system, the role of guiding consumption, etc. And the second part evaluates several specific taxes, vehicle consumption tax, fuel tax, vehicle purchase tax, and vehicle and vessel tax.The fifth chapter is about the fiscal policy in foreign automobile industry. In this chapter, author selected major developed countries, the United States, Japan and the European countries, and compared on fiscal policies especially on fiscal policy encouraging the development of new energy vehicles. Some related reference is worth to learn to promote our country’s automobile industry.The sixth chapter aims to give some recommendations to perfect fiscal policy in automotive industry. Suggestions part includes two parts, tax policy and other fiscal policy, and in both part the recommendations of developing new energy vehicles are included.In the course of fiscal policy studies for the automobile industry, the evaluation on the regulatory role and direction of these policies always made by combining the development status of automobile industry in China. The new energy vehicles should be future direction of development of automobile industry, and the negative environment and social impact of vehicle consumption should get more attention during its development process. Correspondingly, relevant fiscal and tax policy should determine its regulatory role and direction. Restricting the use of vehicle as the time as encouraging consumption, would be relevant regulatory policies goal.