Study On The Influence Of Business Tax Paid Value-Added Tax For The Economy

In 1994, in order to meet the needs of socialist market economy system China carried out tax distribution system. However, with practice of this tax system, it is gradually obvious that the cargo service tax system is unfair and unreasonable, so that double taxation is becoming increasingly serious.In 2012, China began pilot implementation of VAT replacing of business tax in some industries in Beijing and Shanghai to change the original way of levy VAT to goods and business tax to services. Goods and services are fully incorporated into the scope of VAT taxable so that the country do not impose business tax to services and reduce tax rate to avoid double taxation, reduce the tax burden of enterprises, and promote a virtuous cycle of social economy.Business tax to VAT policy has great influence to social economy and industrial development, which becomes the emphasis in academic research. This paper takes Fengtai District, Beijing as an example, researches and analyzes its policy effect in grass roots with public finance theory and practice, and discusses the influences to economy development. Firstly, the paper collates the VAT and business tax related policies at home and abroad; analyzes the current situation of pilot after carrying out the business tax to VAT policy and its influences to local financial, tax departments and relevant industry enterprises with public financial theory;On this basis, studies the progress of business tax to VAT policy in Fengtai District, combines the change of policy and economy development through conception model, collects the data of GDP in Fengtai District, Leaving the area of income, tax revenue change, business tax, VAT, industry tax before and after the implement of business tax to VAT policy, makes questionnaire for enterprises to know about the changes brought by the policy and finally studies the policy’s function to industries in Fengtai District. At last, the paper comes up with suggestions to improve the policy according to the current situation and existing problems.