The Impact Of Structural Adjustment Of VAT Rate On Macroeconomy

In recent years,the VAT rate structural has been degenerated from 17%,13%,1 1%,6%to 13%,9%,6%three gears after the comprehensive"Business Tax Reform VAT"in 2016.The strength and speed of government's promotion of the reform is far exceeded expectations.How is the effect of reform?Which industries should start with for continuous reform?If the VAT rate structure is degenerated,how should industry-applicable rate change?Can the service industry applicable rate be lowered?Can single VAT rate be implemented in one step?These still need scientific and in-depth study.Considering the superiority of the general equilibrium method,this paper takes the SAM compiled from the 2012 Input-output table and related statistics as benchmark data set to constructs a 42-sector static tax CGE model that conforms to China's economic environment,uses GAMS to simulate the comprehensive"Business Tax Reform VAT","degeneration and tax reduction"and the current VAT rate policy,different paths on VAT structural adj ustment,VAT degenerated to two or one gears,total of 10 policies,makes a comparative analysis of the macroeconomic changes.The tax CGE model simulation results show that:1.The"Business Tax Reform VAT,and "degeneration and tax reduction"have produced economic performance,created a favorable tax environment for industrial structure optimization and upgrading.2.The current VAT rate policy by giving manufacturing industry more energy,releases investment to promote economic development trend of high quality.3.Reform is more benefits from lowering the service industry rate than from reducing the strategic emerging manufacturing's,lowering both strengthen this benefit.4.It's more reasonable to incorporate the second highest VAT rate into the minimum one and lower the service industry VAT rate.5.If implements single VAT rate form,the rate can't be set too high,at least lower than the 11%obtained by keeping government's income scale unchanged.This paper proposes taking two gears VAT rate as short-term reform goal,promul-gating tax reduction policies for some industries,increasing other tax revenues such as property taxes to reduce government financial pressure.