Effect Of Replace Business Tax With Value-added Tax On The Local Government Fiscal Revenue System

On May 1,2016,the whole country abolished the business tax and introduced the VAT,which directly affected the distribution of financial resources between the central and local governments.In the long run,as an important policy of structural tax reduction,the "increase" reduces the tax burden of enterprises,avoids double taxation,and increases the vitality of enterprises.At present,local finance has lost the main tax of local tax,and income is under great pressure to increase.The value added tax has been further expanded and the central government's share of financial resources has been further enhanced.However,local finance loses the main tax of local tax,which negatively affects local revenue.How to ensure the steady growth of local fiscal revenue is a problem that local governments need to solve.The economy and society of baoding city are generally good,the finance keep running smoothly,all kinds of undertakings develop evenly.However,since 2016,the downward pressure on the economy has increased,and the lack of effective support for the growth of fiscal revenue,coupled with the unsustainable nature of land finance,the expanding scope of structural tax cuts and the implementation of policies to raise revenues,the trend of low and moderate growth of fiscal revenue can not be reversed in a short time.The current difficulties and challenges are still many,some difficult problems still exist,mainly because the basis of fiscal revenue growth is not solid,it is difficult to restore high growth in the short term;Fiscal expenditure is growing rigidly,and the contradiction between income and expenditure is becoming more and more prominent.While the increase in financial resources has been minimal,the task of promoting development,improving ecology,ensuring people's livelihood,deepening reform and preventing and controlling risks is daunting and the financial pressure is heavy.Taking baoding city as an example,this paper explains the effect of camp increase on the revenue of city and county.Firstly,the background and significance of the study are clarified.Based on the current situation of domestic and foreign research,this paper expatiates on the promotion of the reform by means of literature research,historical analysis and comparativeanalysis.Combining baoding municipal level and baoding city to select representative three counties,the author analyzes the pattern of tax revenue before and the pattern of income after the increase,and discusses the adjustment of the change of the increase and the financial system of Central,provincial,city and county.This paper analyzes the situation and challenges faced by our city from three aspects: the problems faced by local fiscal revenue,the increasing resistance to the growth of local industry and fiscal revenue,and the contradictions between local fiscal revenue and expenditure.Finally,according to the above analysis and research,this paper discusses the measures that local governments should take in the face of regenerating the local economy from four aspects: scientifically and rationally establishing the financial system below the municipal level,developing and improving the local tax system,perfecting the transfer payment system and developing the local economy.It is hoped that it will provide useful reference for the financial departments at all levels in dealing with the impact of the reform and the financial system.