Research On Development Of Green Industry Under Fiscal And Tax Law

Since being proposed clearly in1980s, the concept of "Sustainable Development"has developed into a complete theoretical system by now and is generally acceptedand recognized by the international community. With the theory of sustainabledevelopment more and more recognized by the international community, theimbalance between economic development and resources saving and environmentalprotection is drawing more and more attention of the world. Green industry is acollection of various related sectors and industries pursuing environment-friendlinessand resource-saving in the process of production and development in which theproducts will not cause environmental pollution or destruction in the process ofproduction and after entering into the consumer field. Actively supporting thedevelopment and growth of the green industry has become an important strategy forthe world to deal with the problem of the imbalance between economic developmentand resource and environment and to promote sustainable development.Since the2008world financial crisis, the global economy entered into a stage ofstagnation and decline, and the national economic system and industrial structure ofeach country faced a severe test. After the crisis, each country begins urgently lookingfor a new growth point of economic development and actively seeking the optimaladjustment of the economic structure and industrial structure. The world’s three majoreconomies of the United States, European Union, Japan regard the "green industry" as the main engine of the future economic development. Green industry is ofambitious development potential and able to create many jobs, and even spawnedmany sub-industries, thus the green industry has become a common choice for theworld to foster new economic growth points and to enhance their internationalcompetitiveness. In the process of achieving sustainable development andtransformation of economic growth mode, fiscal and tax policies will play a vital role asan important policy tool for regulating the economy and promoting the development ofgreen industry.The first part of this article is the theory of green industry, which clarifies themeaning of green industry and regard green industry as a collection of relateddepartment and enterprise whose production and operation is related, directly orindirectly, to environment and resource development, protection, managementdepartment (or service). In addition, the first part of this article also discusses thesignificance of the development of green industry and situation of green industrydevelopment in China, and focuses on the theoretical basis of the fiscal and tax law topromote the development of green industry.The second part of this article is the comment on the development of China’sgreen industry in perspective of fiscal and tax law. Based on the division of greenindustry in accordance with the tradition division of the three major industries, this partintroduces how the current fiscal and tax law encourage and promote the developmentof green industry as well as the existing problem, and focuses on the three systembottlenecks of fiscal and tax law to promote the development of green industry,including the drawbacks of tax-sharing financial management system, the tax systemas "non-green" form as well as the current tax system to promote green developmentis weak.The third part of this article is introduction of the foreign fiscal and tax law topromote green industrial development. This part mainly describes the successfulexperience of other countries, mainly US, in utilizing fiscal and tax law to promote thedevelopment of green industry and the lessons for our country’s fiscal and tax law,including perfecting the system fiscal and tax laws and regulations related to the green industry, transforming the direct tax incentives into indirect tax incentives, andmaking the fiscal and tax preferential policies to be focused and targeted.The forth part of this article is the perfection of fiscal and tax law on developmentof China’s green industry. The part, based on the industrial division of the greenindustry, proposes recommendations accordingly to promote the development ofagriculture, industry and services through fiscal and tax policies and measures. Forexample, in respect of agriculture, China should increase financial support foragricultural subsidies and transform the price support policy gradually into directsubsidies; in respect of industry, a distinction should be made between primary andsecondary in order to using the direct incentives and indirect incentives, and theaccelerated depreciation should be expanded; in the regard of service sector, Chinashall be reasonably set the taxable items of business tax, adjust the tax base of thebusiness tax, lower business tax rate and expand the pilot reform of business tax intoVAT.