The Impact On And Counter Measueres To Vat Replacement In Anhui Province

The replacement of business tax by value added tax(“VAT replacement”)has been hailed as an important move in deepening reform of China's fiscal and taxation system.It's a propeller of archiving structural tax deduction,optimizing industrial structure,promoting supply-side reform and refining social division of labor.It has been over 4 years since Anhui Province joined the VAT replacement pilot in October 1,2012.The impact of the replacement has been fully demonstrated.This paper analyzes the institutional design and arrangement of the VAT replacement pilot of China,using tax and economic theories to analysis data including number distribution,invoice flow,tax deduction scale of the VAT replacement pilot in Anhui province,considering the development of the tertiary industry,to summarize the positive and negative stimulus and effects of the VAT replacement pilot to Anhui province and its economic development.This paper also makessuggestions including Merger and lower tax rates,Unify general taxpayer standards,adjust revenue allocation ratio between the central and the local,improve local tax system,gradually cancel the transition period preferential and support policies,against exposed problems such as excessive levels of tax rate,too high tax rates of certain industries,short-term deduction of local revenue,imperfect of local fiscal and tax system,duty crossing between the state administration and the local administration,in order to offer advises for the tax system reform.