On The Policy Implementation Of The Substitution Of The VAT For Business Tax In Zengcheng

In order to further solve the problems of double taxation in business tax and support the development of tertiary industry, State Council executive meeting decided that a deepening reform of the Value-Added Tax(VAT) system should kick off in some regions and industries from 1st January, 2012. Following Shanghai, Guangdong Province and Fujian Province started the pilot program of the substitution of the VAT for Business Tax since 1st November, 2012.The tax department is of the country’s economic law enforcement, shouldering important mission for the country enrichment and tax the people; but also of the public service government, maintaining fair and justice for the society. Therefore, the quality of taxation policy implementation relates to whether the country’s reform and development is smoothly and general situation is stable. However, deviations of taxation policy implementation occur in daily work, which results in the target of taxation policy can’t be achieved. It’s not only bad for developing domestic economic and social progress, but also bad for building socialist harmonious society.This paper takes Zengcheng City as an example. As the member of basic level administrative department, the author knows well details of taxation policy implementation in Zengcheng, including the efficiency on departments and individuals. After collecting and reading large amounts of material, the author applies two research methods to study the issue, including questionnaire investigation and interviews. The paper uses T.B.Smith Model of Policy Implementation in theoretical framework, from four areas of ideal policy, executive bodies, target organizations and environmental factors, and studies the pilot program of substitution of the VAT for Business Tax in Zengcheng. The problems occurring in taxation policy implementation would be found and then in-depth analysis of causes would be conducted. After that, suggestions would be put forward to solve problems. The author hopes that can provide theoretical direction and practice reference for implementing taxation policy better in China.