The Influence Of VAT Reforming On Lianyungang Economic And Tax Revenue

In order to meet the demand of economic development, enhance the transformation of economic development and reveal the principle of tax equality, three major scale tax reforms have been taken place since the reform and opening-up policy in China, the first tax reform was "Tax Sharing-system Reform " in 1994, which led to the reconstruction of tax revenue structure, such unreasonable "Product Tax" was canceled, and the transformation from tax farming to marketization tax system. The second tax reform was VAT Reform in 2009, which lead to the transformation from production-type VAT into consumption-type VAT, the purpose was to erase double taxation problem and to show tax equality. The present underway third tax reform is BT reforms to VAT, with the aim to cope with the global economic recession from 2008, to completely eliminate double taxation, to optimize industrial structure, to promote economic transformation, to improve development quality. Direct influence caused by VAT transformation is not only to the companies, but also to the government revenue.To study how "BT reforms to VAT" policy has influenced tax revenue and taxpayer in Lianyungang city, we could find the shortage of the present policy in order to find out a reliable base upon which we made policy in the future; we could instruct taxpayers to gain more economic profit using VAT policy in their real business; we will know more about how the reform influenced company management and tax policy; for company better coping with VAT form, we could use the study as reference; and inland revenue department could provide a better service to the VAT taxpayers.In my essay, I used the number of taxpayers, sales revenue and tax revenue from 2009 to 2014 in Lianyungang, mainly analysis the numbers of ordinary VAT taxpayers in difference industries in Lianyungang, the floating of industry tax burden, tax revenue, sales revenue before and after the reform, using dynamic panel data model in econometrics, I calculated the index of how the reform policy sales revenue and tax revenue influence industry sales revenue, industry tax burden and industry tax revenue, and how it will influence economic development, industry structure and GDP. In the end, I pointed out some problems been found out in the past 2 years of reform trails, for example:the structure of third industry is not reasonable; tax rate is high; fake report problem; tax decrease for small company is not significant; manufacturing company transfer their tax on upper company etc. To above problems, I found out the ways of solving them, for example:merge different taxes together; lower the standard of general VAT taxpayer; shorten the period of grand-in-aid; let the market adjust more; enhance the propaganda to small-scale taxpayer. In that way, I could find an objective reference and effective solution in future policy making up and carrying out. To study how" BT reforms to VAT" policy has influenced tax revenue and taxpayer in Lianyungang city, we will understand the theoretic base of VAT reform, at the same time, we could find the shortage of the policy, then there will be reference to be relied on when we made related policy in the future, the aim is to promote economy developing rapidly with the study guidance. What’s more, we could instruct taxpayers to gain more economic profit, we will know more about how the reform influenced company management and tax policy, for companies, it could be used to set examples while coping with VAT reform in the future.at last, inland revenue department could provide a better service to the VAT taxpayers.