Scheme Selection And Economic Effect Calculation Of Value-added Tax Rate Consolidation

Since the completion of the "Business Tax to VAT" pilot in 2016,although China’s value-added tax(VAT)has undergone several reforms,there are still a series of problems to be solved.The legislative work of VAT is also urging the process of tax system optimization.The VAT seems to be more complicated than it used to be.The VAT rate has been one of the focuses of reforms in recent years.The government work report has repeatedly mentioned the planning of "three to two rates".Further consolidated tax rates are constrained,and the feasibility of continuing to simplify the tax rate structure for VAT is questionable.In order to restore stable economic growth,maintain the scale of fiscal revenue,reduce the tax burden on small profit enterprises and main industries such as manufacturing,and improve the level of social welfare,tax rate simplification can be used as one aspect of a proactive fiscal policy to improve the VAT deduction chains,reduce the interference and distortion of taxation on the market economy,and release the "efficiency" advantage of VAT.This thesis is based on previous research.Firstly,a large number of domestic and foreign literatures are sorted out,and the research status of the consolidation of the VAT rate is reviewed.Secondly,this thesis expounds the main reasons for the multiple tax rates of VAT,and focuses on the necessity of further simplifying the rates.Thirdly,a unique Computable General Equilibrium(CGE)model with VAT deduction mechanism was designed to carry out empirical analysis,which conformed to the current VAT calculation method,reproduced the specific tax rate grades to reflect the actual deduction mechanism,and considered the conditions of the open economy.The latest input-output(IO)table is used to make the data basis,and 72 industries are divided into more detailed categories as the sector classification,and four consolidation paths of the VAT rate are designed,with a total of 20 tax rate combinations.Fourthly,taking into account the economic efficiency and the fairness of the tax burden among industries,simulations are carried out from three aspects: macroeconomic effect,fiscal revenue effect and industry tax burden change effect.Provide qualitative and quantitative judgments and evaluations.This thesis draws the corresponding research conclusions based on the effects produced by the policy simulation scheme: macroeconomic effects are mainly reflected in the impact of changes in tax rates on macroeconomic policy objectives.The fiscal revenue effects are reflected in the impact path of tax rate changes on fiscal revenue,and the impact on the tax system structure.The effect of industry tax burden changes reflects the specific tax burden fluctuations of the whole industry.This thesis finally proposes to implement a two tax rate structure of "one standard tax rate & one preferential tax rate",and choose the " consolidation of middle tax rate to lowest tax rate " plan,it reduces the 9% tax rate by three percentage points to 6%,the basic tax rate is lowered by one percentage point to 12%,the deduction rate for agricultural products is set at 7%,the import tax rate and export tax rebate rate are adjusted at the same level,so as to achieve the "three to two rates" of VAT.In addition,this thesis also proposes to implement a number of supporting policies to provide "painkillers" for the negative effects of tax consolidation,in order to alleviate the tax burden fluctuations in some industries and ensure the balanced development of the industrial structure.