Policy Effect Analysis Effect Analysis On The Policy Of "Replacing Business Tax With Value-added Tax" In Jiangsu Province

As an important part in the process of expanding the scope of VAT, replacingbusiness tax with value-added tax fits with the demands on the structural reform of taxdevelopment and collection at present stage, which has the vital practical significance onpromoting the development of modern service industry, reduce the corporate tax burden,optimize the industrial structure, transformation and upgrading of international trade. Sincethe implementation of pilot projects, it has had a significant impact on aspects of industrialtax, tax collection and management, the fiscal and taxation relationship between centraland local, etc.This paper introduces major changes of each pilot policy in the process of expandingthe scope of pilots in detail, researches and analyzes overall running conditions sinceimplementing the pilot projects in our province on the basis of economic data since thepilot of Jiangsu. In addition, this paper also inspects the policy effect of replacingbusiness tax with value-added tax in our province by means of descriptive statistics andinput-output table and carrying out analysis from the three dimensions of enterprise, tradeand industry.Through the analysis, we found a few problems of tax bearing in some industries notdecreasing but increasing, pressure of local fiscal revenue and expenditure becominghigher, and the contradiction of central and local finance and right. As constantlypromoting the reform pilot, some problems will gradually appear. The main factors leadingto these problems are small scope of pilot industry, the contestation of central and localbenefits. Finally, corresponding policy suggestions are drawn: with speeding up the pace ofreplacing business tax with value-added tax, it is suggested to keep a watchful eye on taxchanges in different industries in the progress and properly adjust the tax rate to keep taxneutrality, to further expand the scope of pilot industries to improve the deduction mechanism of the whole chain of value-added tax, to adjust the distribution ratio in centraland local scale so as to guarantee the operation of local finance in high efficiency.Moreover, it also suggests to actively promoting value-added tax legislation so as toneutralize the obstruction of reform.