The Empirical Research Of The Business Tax To Value Added Tax Transformation Pilot Program

On November16,2011, the Ministry of Finance and the StateAdministration of Taxation authorized by the State Council issued thenotice of "the business tax to VAT pilot program" which means a new roundof the turnover tax system reform would begin.In2013, the Third Plenary Session of the Party’s eighteen proposedto deepen the reform of the tax system, improve the local tax system, andgradually increase the proportion of direct tax. Promote value-added taxreform, and simplify the tax rate properly. This will undoubtedly increasethe importance of the business tax to value added tax pilot program toa new level.Then, after a trial period, with the increase of pilot industry andthe expansion of the pilot area, how is the effect of the tax system reform?What is the kind of socio-economic effects? What problems exist duringthe reform process? With these questions, this thesis takes the actualsituation of the pilot in Changning District as the main object of study,uses literature study, empirical research and other methods toinvestigate these issues, attempts to provide an effective mechanism fordecision-making mechanism, the finance and taxation departments, as wellas reference for the taxpayers in the pilot area.First, this thesis reviews the academic research of turnover taxreform in the past, explains the business tax, the value added tax and the relationships between them in detail. Second, it reviews the effectof the pilot reform of Changning District in multi-angle, and makesanalysis of the effectiveness of the business tax to value added tax pilotprogram based on the case of Changning District, and then looks forcurrent problems. Third, it describes in detail of the effective responsemeasures taken by Changning District according to the current tax reformsituation, and the development proposals for the industry. Finally, insummary, the thesis puts forward the future direction of the turnover taxsystem reform based on both angles of the tax policy-making and themanagement of tax administration.