Analysis On The Policy Effect Of "Replacing Business Tax With VAT" In Nanchang

The tax sharing system reform in 1994 by reforming the tax structure is divided into the country and local collection unit,which basically forms the tax revenue structure of value added tax dominating the central tax and business tax dominating the local tax.Afterwards,business tax and value added tax have gradually grown into two branches of China's three main taxes.Although the reform of the tax system in 1994 changed the fiscal package system in the past---"division of revenue and classified contract ",and initially rationalized the fiscal distributive relationship of central and local tax,for the stability of local fiscal revenue and other aspects,the tax reform in the introduction of value-added tax continues to impose business tax on the service industry.Business tax base is the total turnover of business operations,rather than just the value-added tax in the process of transferring the value-added tax,inevitably resulting in repeated taxation.Nowadays the service industry has become a new engine of economic transformation and development.The existence of business tax prevents the value-added tax deduction chain from forming a closed loop.It makes the tax burden level of the service industry,such as the collection of business tax is higher than that of the manufacturing industry,which restricts the development and upgrading of service industry.It is also not conducive to encourage enterprises to implement specialization of production,affecting the efficiency of the manufacturing industry production.Moreover,it doesn't benefit the balanced development of the industry.In this context,from January 1,2012 onwards,the business tax VAT pilot in Shanghai transportation industry and part of modern service industry was carried out,which was referred to as "replacing business tax with value-added tax VAT".In this context,from January 1,2012 onwards,the business tax VAT pilot in Shanghai transportation industry and part of modern service industry was carried out,which was referred to as "replacing business tax with value-added tax VAT".At this point,"replacing business tax with value-added tax VAT officially kicked off.From August to September,"replacing business tax with value-added tax VAT" pilot expanded to 10 provinces and cities.On August 1,2013,"replacing business tax with value-added tax VAT" pilot expanded to the whole country.On January 1,2014,the railway transport and postal services began levying tax VAT reform.So far all transport industries are covered into "replacing business tax with value-added tax VAT" pilots.Since June 1,2014,the telecommunication industry has also been included in the scope of the pilot.As a major tax reform after the one in 1994,"replacing business tax with value-added tax VAT" is a prelude to the reform of tax system."Replacing business tax with value-added tax VAT" is able to tackle the problem of double taxation from the system caused by the business tax system and improve the VAT deduction chain through the implementation of value-added tax system under the "repetitive collection,redundant deduction".It is predicted that after "replacing business tax with value-added tax VAT" is implemented,China's tax system will be more scientific and reasonable,and also is in good line with international practice.It is also an important measure to structural tax deduction pilot.At the same time,"replacing business tax with value-added tax VAT" pilot is an important measures in the structural tax cuts.By reducing the overall tax burden of the service industry,it will promote the development of service industry,is beneficial to accelerate the transformation of economic development mode and promote the optimization and upgrading of the industrial structure.Taking Nanchang replacing business tax with VAT policy effect analysis as the research focus,the thesis will have an in-depth understanding of the specific implementation,analyze the specific effects of replacing business tax with VAT produced in Nanchang pilot industry,tax revenue,tax collection and economic development.From the perspective of the operation of the pilot,"replacing business tax with value-added tax VAT" has greatly contributed to the modern service industry development,improved the Nanchang industrial structure,and enhanced the Nanchang economic vitality,at the same time,transportation industry average taxpayer's tax burden has increased to some extent.Meanwhile,there is still some further space for "replacing business tax with value-added tax VAT" in tax policy setting and implementation,which needs national and local tax authorities in tax collection and management to be concerned about,also needs the gradual maintenance and improvement of the policy-makers.The paper will put forward to improving the related implementation details on the solution for "replacing business tax with VAT" policy,so as to provide countermeasures and suggestions to improve the current development of the uneven industry and accelerate the tax collection construction.For the purpose of continuing to expand the pilots of "replacing business tax with VAT " and further accelerate the development of Nanchang city,it will provide a reference to promote economic transformation and upgrading,also provide a specific case study "replacing business tax with VAT " pilot,which has certain practical significance.Because Nanchang is in the middle of China,its geographical advantage is not obvious.How to accurate positioning in China's economic transformation and upgrading and how to play a unique advantage of such a city as well as how to realize the corner overtaking is a major reform issue.Seizing the opportunity of the industrial structure adjustment in the "replacing business tax with value-added tax VAT",promoting the development of modern service industry as the representative of the tertiary industry by leaps and bounds,should be the broad road to the healthy development of the economy in Nanchang in the longer term.