A Study On The Tax Policy For Promoting The Industrial Structure Optimization And Upgrading In Jiangxi Province

Optimization and upgrading of industrial structure have always been important factors for sustained economic development of a country or region. Since China’s implement of reform and opening up policy, its economy has grown continuously, and the industrial structure has been better and better, which plays a kernel role in promoting the overall development of China’s economy. The 2015 government work report pointed out that China’s industrial structure should be promoted towards the high-end level.However, the industrial structure is not in balanced development among all regions of China. Shanghai, Beijing and other places developed in advance, while cities in central regions at relatively slow developing speed. Jiangxi Province, as a major agricultural province, in recent years, its secondary and tertiary industries are developing in recent years. But the development is not balanced, there are some structural contradictions for the development of tertiary industry is relatively backward. It is essential to do an in-depth study about the industrial structure of Jiangxi province, in order to promote its optimization and upgrading of industrial structure, respond to the requirements of the government work report in 2015 and make it to achieve the high-end level.Tax income makes a great difference in the revenue growth of a country or region.It is not only the most direct tool for macroeconomic regulation and control, but also the institutional foundation of an effective market resource allocation. According to practical experience, a country or region’s revenue growth is extremely important for the adjustment. Over ninety percent of China’s fiscal revenue is tax revenue, and different tax policy will to some extent affect the optimization and upgrading of industrial structure. For example, the high-tech enterprises in accordance with the low rate of 15%corporate income tax would promote the development of high-tech industry property taxes, expanding the scope of taxation would limit the development of the real estate industry, and so on. Tax policies will affect the optimization and upgrading of industrial structure more or less. Therefore, When study the industrial structure of Jiangxi province, it is necessary to analysis the impact of tax policies.In this paper, the tax status of Jiangxi Province and its industrial structure are the research object. By using theoretical and empirical analysis charts, we draw relevant conclusions. Firstly, based on tax and upgrading of industrial structure optimization theory, describes the mechanism of tax policy which can promote the optimization andupgrading of industrial structure. Then according to the relevant data since 2004, it analysis the problems of industry structure in Jiangxi Province, the burden of tax of the three major industries, the tax elasticity and the effect of current tax policy to the optimization and upgrading of industrial structure. In terms of corporate income tax,value added tax, sales tax and three industries, using VAR impulse response measurement model to test the relationship between taxation and industrial structure.The conclusions are: The development of tertiary industry lags behind in Jiangxi Province and the lack of pillars industry. The overall macro burden of tax is low, but there is a higher burden of tax on the tertiary industry; the relationship between the business tax and the three industries is not manifest, while the relationship between VAT and the three industries is obvious. Finally, learn from the successful experience of foreign countries, relevant tax policy proposals was put forward, including the launch of a comprehensive reform to promote business growth, the implementation of tax incentives to promote the development of Jiangxi finance and insurance sector and the introduction of new taxes to make it more in line with the industrial development in Jiangxi Province.