Study On The Implementation Effect Of The Policy Of Replacing Business Tax With Value-added Tax In H Province

The policy of replacing business tax with value-added tax plays an important part in the reform of the fiscal and tax system in the 12 th five-year plan period and the first year of 13 th five-year plan period,whose key is to reduce the scope of business tax collection and bring these into the scope of VAT collection.It is conducive to reducing the tax burden of the industrial enterprise as a whole,propels the optimization and transformation of the industrial interior structure and the sustainable development of China's economy.It facilitates the supply-side structural reform efficiently and also leads to the tax system and sector reform's development in depth.At the same time,this policy has also brought negative effects on the reduction of local taxation,there has been a dilemma that the local government's power is expanding and the pressure of expenditure is increasing in the actual condition.Therefore this paper takes the 2011-2016 tax revenue panel data of 14 cities in H province as the sample and makes use of DID method to measure the effect of VAT Program,and makes suggestions to optimize the policy system of VAT Program in H province.The first chapter discusses the concepts related to VAT policy and researches whose purpose and implementation steps and meaning,and analyzes the underlying theoretical basis: the burden of equality and tax neutral,tax economic efficiency and tax administrative efficiency,theory of public finance and the division of taxation theory,post-positivism policy evaluation theory.The second chapter takes the panel data of tax revenue in H province as an example to analyze the effects of the policy of replacing business tax with VAT in pilot implementation: the tax burden of enterprises reduced and the growth mode of local tax transformed;the internal structure of the enterprise was improved and built a new platform for supply side construction;it brought new opportunities for the reform of the tax system in H province;it promoted the establishment of a comprehensive tax treatment platform.At the same time,there were many problems in the following aspects:the tax burden of enterprises reduced and local governments lost the main tax categories;the internal structure of the enterprise improved but violated the neutral principle of VAT;difficulties existed in the merger of tax departments;tax revenue information's construction existed insufficiency.The third chapter analyzes the reasons of the problems existing in the policy ofreplacing business tax with VAT in H province.Using the measurement method of "difference-in-difference" for reference,this paper estimates the policy contribution of VAT Program on the reduction of local government's tax revenue,including the introduction of the DID method and the applicability of the policy,setting the regression model and data description,and reporting the main regression results:the policy has a certain negative effect on local tax revenue,the contribution to H province local tax revenue reduction is more than 27.6% during the sample time,the impact has certain continuity,The effect of full implementation of the policy is remarkable,and the above conclusions pass the robustness test.The reasons why the effect of the implementation of the "replace the business tax with a value-added tax" policy are analyzed comprehensively,including the analysis of change of annual effectiveness after policy implementation,a comparative analysis of the estimated effects without and with other control variables,exploring the persistence of this effect.The fourth chapter combined with the current policy implementation conditions and regression results,proposes that the system of "replacing business tax with value-added tax" can be optimized from five aspects,that is,Central government improves the value-added tax system and keeps a balance between direct tax and indirect tax.H provincial government promotes the matching of local tax systems and auxiliary tax systems and standardizes the collection and management of tax departments.Every municipal government develops regional economy.