Research On Reform Of Consumption Tax Under The Background Of Industrial Transformation And Upgrading And Compensation Of Local Main Tax

The current consumption tax system began in 1994.Although having been experiencing adjustments,it still has limitations.Firstly,it has a distinctive “industrial” characteristic.The tax base is limited to products rather than involving the emerging tertiary industry.Secondly,the degree of tax greening is not sufficiently high,which dose not conform with requirement of industry upgrading to the ecological green transformation.In the economic history,the tax system always makes adaptive adjustment as industrial transformation and upgrading is ongoing,which is underlined by present reform program to replace Business tax with VAT.However,with the completion of “Camp to Add”reform,and as the Business tax will withdraw from the stage of history,the local tax system of China has to be confronted with the problem of “Absence” of the main tax.In the existing tax system,the consumption tax is the optimal choice to fill the seats of the main local taxes.In this paper,the research of consumption tax reform is based on the very realistic background of industrial transformation and upgrading and local tax system construction.The basic structure of this article is as follows.The first chapter is the introduction,with primary coverage of introduction for the background and significance of the article as well as review of related literature.The second chapter is about the related theories.In the third chapter,this paper discusses the orientation of consumption tax reform,and analyzes and determines the concept of the consumption tax reform under the background of industrial transformation and upgrading as well as local main tax compensation.Corresponding to the two dominant concepts,the fourth chapter focuses on the problems existing in tax range,tax rate design,tax links,and ad valorem tax relationship etc.of the current consumption tax.The fifth chapter describes measures and suggestions of deepening tax reform.The author holds the opinion that various elements of the consumption tax system should be optimized and adjusted in accordance with the above reform concept.Moving the taxation link backwards is a key for consumption tax playing a good role of local main tax in the future.The innovation of this paper lies in the following aspects.The article puts the research of consumption tax reform under the dual realistic background of industrial transformation and upgrading and local tax system construction and organically integrates the two major reform mission,showing the distinctive characteristics of the times and the practical significance.Meanwhile,on the basis of feasibility analysis,this paper extends the taxation scope of the consumption tax to the service industry,which shows certain progressiveness.