The Research About Countermeasure That The Transformation Of VAT Influencing On Finance & Revenue

"Transformation of VAT from production model to consumption model" was explicitly proposed in the Third Session of the Sixteenth Central Committee of CPC in October, 2003. The transformation of VAT has become the important content in domestic new turn of reform in tax system. This thesis unifies through the quantitative investigation and the qualitative investigation, the tax policy research and the tax administration research in the synthetic foundation which the predecessor studies, and then surveys that the transformation of VAT influence on the central and local governments' financial revenue, different industry and enterprise's finance as possible as collecting data. In this foundation, this thesis proposes countermeasure and suggestion about the transformation of VAT. Presently the main study content and conclusion is as follows.I . Theoretical reference to the transformation of VATTaking "the concise tax system, the wide tax base, the low tax rate, the strict collection and administration" in The Decision About Completing Some Questions in Socialist Economy System MADE of Central Committee of CPC as principle in new turn of tax system reform, has the deep modern tax revenue theoretical foundation. Transformation of VAT from production model to consumption model has effectiveness of tax deduction. The effectiveness may not only optimize the economic structure, enhance the economic efficiency, stimulate the economy to grow, expand tax base; but also it is advantageous to slow down the motive that people steals and evades taxes, improves the collection and administration efficiency, finally will be advantageous to the increase financial revenue. The VAT also has dual nature of the commodity tax and the income tax, conforming to the superior tax theory. Transformation of VAT from production model to consumption model is precisely the utilization of the superior tax revenue theory, perfect valued-added tax system, has proper attention to both efficiency and fairness, and constructs the economical reasonable tax system structure, promotes stable economic increase.