The Analysis Of The Efects And The Development Of The Replacement Of The Business Tax With Vat In Modern Serveice Industry

The development of high intelligence,high technology,high value-added modern service industry is an important sign to improve the quality of national economy and to measure regional competitiveness and degree of economic development of modern society, which will push forward the economic structure transformation and industrial upgrading in China and become the ultimate power of a new norm of economic growth.As the business tax is collected in full and no deduction is allowed,the modern service enterprises are faced with the problem of serious double taxation which increase costs and has become a major constraint.The government introduced the tax policy of the replacement of the business tax with a value-added tax to lead to the rapid development of modern service industry.This article will take Jiangsu province as an example to analyze,applying related policy evaluation theories,the regulating effect which the reform produced in tax reduction and social development.Also through the analysis,we may find the deficiencies of the reform policy such as vague boundery,too many tax rate levels and the too high standard of general taxpayers.This article will give some advice in the light of the deficiencies and propose some countermeasures in making a scientific tax policy system in modern sevice industry in the future.The reform expanded from a pilot project in Shanghai to the nationwide and experienced a process of maturation in reform direction,implementation path and tax rate design.The reform policy in modern sevice industry in Jiangsu has significantly reduced the tax burden,promoting the seperation of modern sevice industry from manufacturing and speeding the pace of development in modern sevice industry, which help achieve the objectives of industrial upgrading,specializing,enterprise innovation,domestic demand expansion and export improvement.