The Research On Preferential Tax Policies To Promote The Development Of Xiangxi Economic Development Zone

As an important economic lever and economic development booster, preferential taxpolicy plays an important role in promoting regional economy,coordinating regionaldevelopment.Although relatively underdeveloped in Hunan, with its unique naturalresources and ecological environment, xiangxi region has a special status in the process ofthe province’s regional coordinated development, enriching province, acts as a foundationrole in building a moderately prosperous society, and has a strategic position in upgradingand adjustment of economic structure and achieving sustainable development.Now,Xiangxi Economic Development Zone is in the initial stage, its infrastructureconstruction, industrial construction projects, including the overall investmentenvironment all need support from the government. For Xiangxi Economic DevelopmentZone, the aim of preferential tax policies is to attract and create a relaxed environment forinvestment, expand financing channels.,and actively attract social capital to participate inthe development of Xiangxi. Meanwhile by using the form of tax breaks and otherpreferential tax polices, in attracting focused investment projects alternatively, andtaking advantage of the long-term effects of the tax incentives, to adjust the industrialstructure, promote the optimal allocation of resources for the purpose, integrated driveXiangxi coordinated economic development. Furthermore, in condition of poor financialstrength, low management level and technical capacity, and insufficient Staff competence,preferential tax policies can provide local national enterprises with more developmentopportunities and enable them to strengthen their competitiveness, and take up themission of driving the national economy development as soon as possible. Therefore, thesupport of the preferential tax policies is an important means for the Government topromote economic zone development in western Hunan.This article studies on the preferential tax policies of Xiangxi EconomicDevelopment Zone from the perspective of public policy analysis.It aims to investigate the impact of the preferential tax policies in XiangxiEconomic Development Zone, analyze the existing preferential tax policies and their prosand cons, reexamine the formulation and the implementation process of these policies, andfind out the problems existing in the policy implementation, finally put forward theproposals of optimizing the preferential tax policies to support and promote therecommendations of the Economic Development Zone in Western Development. The paper is divided into five parts; the contents are summarized as follows:The first part is the introduction. This part mainly describes the research topic and itsbackground, its purpose and meaning, as well as a dynamic overview of the results athome and abroad.The second part is about the connotation of tax incentives and preferential taxpolicies. This part elaborates tax incentives, preferential tax policies for differentconnotation, the form of tax incentives, preferential tax policies for classification, as wellas the main factors of the impact of preferential tax policies.The third part is the case analysis. This part introduces the current implementationsituation of preferential tax policies in Xiangxi Economic Development Zone, analyses theexisting problems and the causes of preferential tax policies in Xiangxi EconomicDevelopment Zone.The fourth part is a comparative analysis. This part makes a comparative analysis ofthe preferential tax policies have been carried on in different ethnic minority areas andEconomic Development Zones.The fifth part is the recommendations on improving the existing preferential taxpolicies of Xiangxi Economic Development Zone.This part presents the necessary ofimproving the Xiangxi Economic Development Zone preferential tax policies, on the basisof the above describes, put forward some Suggestions to perfect Xiangxi EconomicDevelopment Zone preferential tax policies.