China's Steel Industry Tax Burden Empirical Analysis

The current development status of China’s iron and steel industry is not optimistic, dueto excess capacity, excess supply of affordable products, insufficient supply ofhigh-value-added products and low resource utilization problems. These problems hadrevealed significant gaps between the iron and steel industry in China and developedcountries. Especially after the outbreak of the financial crisis, by the impact of the sharpreduction in external demand and the sharply decline in impact demand, China’s iron andsteel industry are under shocking. As basic industries and pillar industries of our economyand society, it is significant for the iron and steel industry to use the tax revenue replying tothe crisis. Therefore, the study of the tax burden of the steel industry has a certain referencevalue to the iron and steel industry development.The tax burden of China’s steel industry is the thesis of this paper. Firstly, the paperdescribes the basic concepts and the measure of the tax burden. Secondly, it reviews thedevelopment process and tax system structure, the overall tax burden condition of China’ssteel industry. Thirdly,56companies which have listed in the stock exchange in the steelindustry are selected as the sample data from2007-2011to research the tax burden ofChina’s steel industry. The data have been used in the positive analysis of steel industry taxburden. Descriptive statistical method has been used to introduce the tax burden ofturnover tax and business income tax, and panel data analysis has been used to research theeffect factors of steel industry tax burden. Finally, according to the result of positiveanalysis, I proposed the some advices about how to optimize tax burden of steel industry.