On Legal Issue Of Levying Consumption Tax On Part Of The Service Sector

Through sorting out the changes occurring in the turnover tax and action tax in the service industry before and after the"replacing of business tax with value-added tax(VAT)",the thesis discovers that nowadays,the imposition of VAT across the service sector leads to an imbalance of business tax burden before and after some services are provided.It argues that consumption tax should be levied on part of the service industry.This paper discusses the justifiability of consumption tax levy on part of the services providers from three aspects:current development of the service industry,the function and positioning of consumption tax and the overall requirements of tax refonn.Then it analyzes the possible hurdles in levying consumption tax on the service industry and through drawing on the experience of other countries and regions in taxing special consumer behaviors,proposes a preliminary plan.The plan follows the two-tier system of turnover tax,with VAT as its basis and consumption tax as a measure for regulation and control.Specifically,it pays extra attention to the relationship between the scope of tax and categorizing standards to theoretically meet the requirement of tax equalization;in practice,it aims to achieve scientific consumption guidance and distribution regulation.