"Replacement Business Tax With Value-added Tax" Impact On Cultural Industries

The cultural industry has been recognized as the emerging "sunrise industry","goldindustry" and "green industry" in the twenty-first century, because of modem service industrylow energy consumption, little environmental pollution, resources to meet the needs of thecurrent low carbon economy development, adapts to the need of sustainable development.Belongs to the low energy consumption, light pollution of high-tech and value-added of greeneconomy, especially plays an irreplaceable role to meet the increasing spiritual demand, hasbecome the measure of a country and regional economic development level of importantstandard. Cultural industry development is supporting our country to realize thetransformation of economic development and industrial structure adjustment, at the same timeis the effective means to solve the problem of the employment in our country. The culturalindustry is part of the modern service industry to exact a business tax, there is a certain degreewith the cultural industry of specialization and the new direction of development due to its taxsystem defects, resulting in cultural industries industry of tax burden is too heavy, negativeeffect on the cultural industries division of work, hindering their sector breakdown, affectingthe normal development of the whole industry“The cultural industry be cultivated to the pillar industry of the national economy","building a socialist cultural power, to enhance national cultural soft power" is the Party’s18th and third plenary session of the18th CPC National Congress’s strategic objectivesestablished. Since2000, the cultural industry has been developed rapidly in our country,especially in expanding consumption, stimulating domestic demand, adjusting structure andpromoting growth. At the same time,“two parallel taxes were levied” is increasingly showingits intrinsic irrationality in our country, not only does not meet the basic meaning of the designof the tax system. Business tax double taxation problem widely exists, resulting in culturalindustries the heavy tax burden on the normal development unnecessarily distorted, is notconducive to the development of modern service industry, detrimental to economicrestructuring and already has not suit to the current requirements of the economicdevelopment. Therefore, its reform is imperative.When VAT was raised,it has been proved to conductive promoting division. VAT design is to facilitate the division of cultural industries and extend industrial chain, through theelimination of double taxation, reducing the tax burden of cultural enterprises, therebypromoting cultural enterprise division, accelerating the industry refinement which canpromote the professional development of cultural enterprises, to form the industry clustersand the new economic growth point.“To replace business tax with value-added tax” as thehighlight of taxation system reform, fully responsive to cultural and creative services, radioand television services belongs to cultural industry, the rest of the measures are also related tothe cultural industries. These reforms are bound to greatly affect China’s cultural industry ofdevelopment.