The Analysis Of Impacts On The Tax Restructuring Pilot In The Transportation

The history of VAT in China is very short, the duration of which cannot reach that of business tax’s past. And yet, the value-added tax has been the first largest tax in our country after20-year development, and gradually comes to perfection. This fully shows that VAT plays a key role in the national economy development. In1994, China implemented tax-separation finance system change. After adjusting the tax structure, the VAT and business tax became two main taxes in Chinese tax system. VAT can avoid repeated levies, where business tax cannot do that. In addition with the VAT reform in2009, the VAT burden has been decreased and equation has been broken in the two taxes. Not only the depth but also the breadth of VAT reform should be strengthened to maximum advantages.Since the introduction of VAT in the1980s, China has enlarged the VAT collecting range of VAT for three times:first, from1983to1984, the government had enlarged the VAT collecting range scope of VAT to12products including steel materials, and the range had been increased from1986to1989; second, in1994, the VAT was generally levied on all activities including sales of goods, provision of processing, repairs and replacement services; third, according to the VAT reform regulation issued by the State Council promulgated in2011, the pilot reform first began in Shanghai, enlarging VAT tax scope to the transportation industry and partial modern services. At present, the amount of pilot cities is8, and the ultimate goal is to expand the VAT reform in the two industries to the whole country.It is inevitable for transportation industry to collect VAT in economic development of China. But deepening tax reform still has a long way to go.