Research On The Tax Policy To Speed Up The Optimization And Upgrading Of Industrial Structure In China

Industrial structural adjustment plays an extremely important role in a country’ssustainable economic development. Since reform and opening up, China’s economy hasdeveloped stably. All aspects of industrial structure have also been greatly improved.However, as a developing country, when compared with international developed countries,China lags behind in industrial structure. In many ways, there is still a big problem,especially in industrial structure, which seriously influences the economic development.Therefore, how to accelerate the adjustment of industrial structure, narrowing the gap withinternational countries to quicken the pace of further economy growth, is still an importantissue worthy of in-depth study.The tax has a significant impact on a country’s economic growth. Tax is not only animportant tool of the government macro-control, but also the Institutional basis of theefficient allocation of resources in the market. From practical experience, a country’s taxrevenue growth is essential for economic growth, however, the optimization andupgrading of industrial structure directly affect economic growth. Therefore, the existingindustrial structure, together with theoretical tax policy should be linked, examined indetails and combined effectively. Mechanisms between China’s tax policy and industrialstructure adjustment should be systematically analyzed. Combined with current tax policy,we can analyze the current situation of industrial structure; discuss the active role inoptimization and upgrading of industrial structure. Then, we propose recommendations forthe future of tax policy.This paper can be divided into three parts. We start from the main factors influencingthe change of industrial structure. Tax effects are analyzed in these four areas such as thestructure of demand, factor endowments, technological advances and international factors, thus affects the process of the industrial structure theory. It also illustrates that the existingtax policy has indirect impact on the optimization of the industrial structure. Secondly, itanalyzes how these factors act on changes in industrial structure from each of the majortypes of taxes, and describes the problems of the current tax policy. Finally, combinedwith the actual situation of China’s tax policy and the theory process affecting industrialstructure, targeted recommendations in tax policy have been proposed, which willcontribute to achieving the purpose of optimizing the industrial structure upgrading.