Study On The VAT Pilot Reform From The Perspective Of Policy Process

From 2012 China started turnover tax reform which is “Changing from Business Tax to Value-Added Tax(VAT)”.Because of the complexity and particularity of the banking industry,which has immense impact on social economy,the tax reform on banks did not start until May 2016.China is the first country to levy VAT on financial services completely in the world.As a result,the VAT pilot reform on banking industry is always the hard and hot field among the research of many scholars.Furthermore,how the reform will work is the important topic both for scholars and public.At present,it has been more than one year since the banking industry implemented the new tax policy.This paper studies the policy effect in order to evaluate the concrete effect of the policy,and finds out the existing problems and puts forward some relevant suggestions.This paper is based on the theory of policy process and dynamic theory in the public policy analysis.It is found that the tax reform on banking industry is a dynamic policy process,and the evaluation of policy effect is an important link in the policy process.Through the discussion of tax neutrality theory,it is found that VAT has the advantages of eliminating repeated taxation and reducing the distortion of resource allocation,and the implementation conforms to the trend of development.After combing the whole process of the VAT pilot reform,it is found that the determination and confidence of the government are reflected in the whole process.After comparing the tax policies of the bankingindustry,it is found that the current VAT policy has not changed too much from the business tax,and cannot fully reflect the theoretical advantages.On the study of theoretical basis and banking tax policy,the paper analyzes the industry effect and local effect from the view of medium and macro level,combined with the tax data of the banking industry of city A in the past three years.The specific effects are tax burden effect,credit effect,local fiscal effect and tax collection effect.Through the policy evaluation,the paper finds that there are several problems,such as the increase of the overall tax burden of the banking industry,the less income credit,the impact on the local fiscal revenue and the need to improve the tax collection and management.Finally,the paper draws lessons from the experience of international banking taxation.The suggestions of optimizing policy and promoting local development are put forward,and the direction of tax system reform in the future is prospected.The paper combs the domestic and foreign related documents,collects the data through various channels,and has a comprehensive interpretation of the policy process.In addition,the domestic and international comparison of banking tax policies is carried out by using comparative research method.Through statistical analysis of tax data before and after the tax reform,quantitative analysis is made on the tax burden,credit and changes of local financial revenue in the banking industry of City A.At the same time,combined with the practice of tax work,the paper analyzes and solves the problems in detail,and puts forward practical operable suggestions.Due to the limitation of time and ability,the data of the thesis have the limitation of short time span and small space scope,which make the depth and breadth of the research not enough,so we should pay attention to the improvement of further research.