China's Coal Industry Research Tax Issues

Coal resources are the material base of human survival, the important indicator ofdeveloping advanced productivity as well as the concrete reflection of a country’scomprehensive national strength. As we all know, China is lack of oil and gas, but rich in coal.Our energy structure meant that coal resources play a strategic role in the development ofnational economy. Therefore, the sustainable development of coal industry will influence thesustained, stable and high-speed development of economy in our country. Scientific taxes andfees system of coal not only can enhance enterprise competitiveness and promote the healthydevelopment of coal industry, but also can save coal resources, protect the environment andmake society in harmony with resources and environment. Having constant improvement,taxes and fees system of coal is formed, which contains value added tax, business income tax,resource tax, resource compensation, special fund, fee and so on. However, with the changingof economic structure, taxes and fees system of coal in our country have presented more andmore problems, seriously affecting the healthy development of coal industry.Firstly, the paper explains thoroughly the fundamental theory as the reason of formulatingtaxes and fees system, which refer property theory, externality theory, resource depletiontheory and sustainable development theory. Secondly, it is introduced about the reform processand present situation of taxes and fees system of coal. Thirdly, the paper takes value added tax,resource tax and fee as the object of study, analyzing the drawbacks and their consequences bythe method of quantitative analysis. In the end, based on the drawbacks mentioned above, thepaper puts forward the practical measures of taxes and fees system reform.