Research On The Influence To Local Financial Resources By Introducing "to Replace The Business Tax With A Value-added Tax"

Since the international financial crisis from 2008,the world economy is in the stage of deep readjustment,its recovery process is rough and hard.China's economy operation still exist various contradictions and problems,the fluctuation of international financial market is enhancing,the problem of internal economic structure is standing out,the over capacity of some industries is growing more seriously,the operation of real economy are becoming harder,the pressure of economy decreasing is increasing,the development of regional economies is differentiating,the contradiction between fiscal revenue and expenditure is bigger,the reform steeping into the overcoming stage.Under the background of the economic society development,the policy of “To replace the business tax with a value-added tax” is introduced for solving repetitive taxing,reducing taxation burden of enterprise,and promoting sound development of social society and the real economy.So to say that the policy of “To replace the business tax with a value-added tax”has the character of tax reduction,it will eliminate repetitive taxing in the production and circulation area,connect the smooth channel for deduction of VAT paid,work out the inherent shortage of our circulation tax system.But with the implement of “To replace the business tax with a value-added tax”,various problems occurred successively,the local taxation lost its main tax category;the local tax revenue reduced markedly,and the difficulty on organizing revenue increased;the power division on property and office authority between central government and local government is not scientific,the usable financial resources for local government reduced greatly,and the contradiction of revenue and expenditure become more sharp.The above-mentioned problems can't be automatically adjust by the market,it shall be solved in the mode of legalization by government.By applying theories on supply-side structural reform,tax system and functions and others,the article author learns from experiences of overseas local tax system,combines self working practice,analyzes the financial data of Wu'an City,Hebei Province,summarizes the problems occurred during the process of applying “To replace the business tax with a value-added tax”,and brings forward corresponding countermeasures and suggestions.