The Research On Tax Burdens Of C City Food Processing Industry

C City is an important base of marketable grain and cash crops in our country. In recent years, a series of preferential tax policies have been issued in order to promote the healthy development of the food processing industry. The implementation of these policies has effectively promoted the rapid development of the local food processing enterprises. However, at the same time, the tax of food processing enterprises have lowered, substantial remaining tax credit and perennial losses have appeared in many companies, which leads to the phenomenon of lowering tax burden.This study selected C City as a representative, adopting the methods of surveying on the spot, interviews and other methods, accessing to a large number of statistical literatures, focus on the tax burden of food processing enterprises to conduct a study to determine the real tax burden of food processing enterprises. According to the production and operation of the tax in C City, thus making the conclusion that there is the problem of lowering tax in C City, and further analyzing the problem and its cause from the aspects of tax policy and tax administration.Many tax policies have led to the phenomenon of lowering tax burdens. Our country has formulated many preferential tax policies in food processing enterprises; the unreasonable provisions on the import and sale items in the current VAT regulations; the taxpayer issue the invoices for the purchase of agricultural product by themselves; the implementation of Consumer VAT, and the new fixed assets allows the deduction of input tax; while the income from the primary processing of agricultural products was exempted from corporate income tax. While in the aspect of tax administration, the establishment units have poor capacities in tax administration, difficult to well regulate food processing enterprises, including the intrinsic problems of easy influence by the seasons, difficult to grasp material consumption level, and difficult to t control product sales and so on, thus leading to the problem of lowering or no tax burdens.Through the above analysis and research, it is recommended to adjust the tax policies of grain processing enterprises; strengthening the grain purchase invoice management as well as the innovation of tax work by the use of information technology, enhancing the day-to-day management and inspection so as to solve the lowering tax burdens in food processing enterprises, thus contributing to the formation of a more complete and scientific tax system, preventing and reducing tax-related risks and the risk in tax law enforcement, elevating taxpayers’consciously compliance with tax law, so as to create a harmonious environment for law enforcement and taxing environment in the food processing industries.