Research On The Policy About "to Replace The Business Tax With Vat" In The Pilot Industry Of Heilongjiang Province

Since 1994 when the system of tax distribution came into effect, according to whether the goods is tangible or intangible, commodity of the market economy in our country has been divided into two types, namely, goods and services, and in the turnover tax system, two turnover taxes have been set up: value added tax and business tax. With the development of economy as well as the changes of the social function of division of labor, there exists a serious phenomenon of double taxation inside the business tax and the overlapping parts of the two taxes, thus to a certain extent hindering the process of promoting the optimization and upgrade of economic structure, and the process of achieving sustainable development. Therefore, the reform of “replacing the business tax with vat”arises at the historic moment.“Replacing the business tax with vat”, as an important part of VAT expansion circumference process, corresponding to the needs of the current tax development of our country and the needs of tax collection and administration system reform, is significant to the promotion of the development of modern service industry, the reduction of the tax burden of enterprises, the optimzation of indusstrial stricture, and the upgreda of international trade. The implemontation of the pilot program has a great effect on taxes on industry,industrial structure, as well as the relationship between the central and local tax.Based on the economic data and the data of tax collection and administration in Heilongjiang province after participating in the pilot program, this paper has researched the overall implementation of relevant industry after the pilot program, from the distribution of taxpayers, economic contribution rate, tax changes, the structure and the scale of tax reduction, as well as the influence on the financial income, industrial structure, social economy, and other points of view, systematically analyzing the policy effects caused by the pilot program in Heilongjiang province, with the methods of data analysis, and typical investigation.Through the analysis, the writer has drawn a conclusion that the implementation of “replacing the business tax with vat” in our province hasreached the aim of the police. The policy really contributes to optimizing tax structure to perfect the financial and taxation systems, optimizing industrial structure to promote economic upgrade, expanding employment to promote the improvement of the people’s livelihood, and structurally reducing tax to support economic development. Through the analysis, the writer has also teased some of the problems existing in the reform process of the policy, and deeply analyzed the causes of the problems. Finally, the writer, combining the effect analysis of the policy as well as the problems arising from the policy execution, from the angles of perfecting the policy and developing the economy in Heilongjiang province, has put forward feasible countermeasures and suggestions.