Cost Optimization Of Tax Collection After Replace Business Tax With Value-added Tax

Since January 1st,2012,China had taken Shanghai as a lead in starting the pilot project of " replace business tax with value-added tax ".As of May 1st,2016,China has fully promoted the pilot program of " replace business tax with value-added tax ".The implementation of the "VAT reform" policy has had an influence on taxpayers,tax systems and the local government in many aspects,such as increase the tax burden of taxpayers involved in the new policies;increase the difficulty in tax collection as the surge of tax system administrators.Meanwhile,business tax is a tax owned by local governments,while value-added tax is a tax shared by the central and local governments,therefore,the implementation of the project will also affect the economic development of local governments.With the economic and social development of our country entering a new normal,it is of great importance to study how county-level State Tax Authority to optimize the costs of tax collection and administration level under the special context.In this paper,do analysis about tax collection and management cost of State Tax Authority under the background of " replace business tax with value-added tax " according to the relevant data from daily work to know the impact on tax system caused by the reform.Then do analysis about current situation of tax collection and management cost of C county under the background of " replace business tax with value-added tax ",the analysis results show that there six problems after the reform,which are: high cost,complex and changeable tax system,insufficient scale and quality of relevant personnel,imperfect internal mechanism,asymmetry information between taxation system and taxpayers,impact from external tax environment.From the analysis,we also realize six factors for affecting the tax collection and management cost of C county,which are: double agency relationship,frequent tax reform,incomplete tax service system,asymmetry information of tax collection,week awareness of tax collection costs,low compliance with tax laws from taxers.Considering the above situation,we put forward six measures to optimize the costs of tax collection and administration,which are: managing the taxers professionally,promote the reform of taxation system,optimize the pattern of tax collection and management at the grassroots level,strengthen the building of the state taxation team at grassroots level,improve the quality of tax service and establish a system of tax collection and management.