A Study On Tax Policies For Revitalizing The Industries In Northeast China

Taxation is the important tool to adjust the macroscopical economy. So the economy development is followed by taxation system's reform and adjustment certainly. Since system of dividing taxes reform in 1994, although our nation has built the taxation system that the main body is turnover tax, specially the value added tax. The percentage that business income tax occupation arises and the tendency of Two Proportion are reversed successfully. But the malpractice also exposes gradually. The main performance is the imcompletation of the taxation's kinds. On one hand, there is the critical repeated taxation; on the other hand, there also exists the taxation blank space. At the same time, The Double Main Bodies system, which pays equal attention to turnover tax and income tax, has not been built. There is too much income tax favorable polices and there is lack of plans for entire project and scientific management and the taxation macroscopical adjustment is weak. The National Excise Office definitely put forward that taxation system reform thought that the principle of a more simplified taxation system, broader tax collection basis, lower tax rates and stricter tax collection in 2003. The taxation favorable police of promoting old northeast industrial base came on in 2004. This tax favorable police mainly include two aspects. The first aspect is The Notice of Rules about Problems of Value Added Tax Credit Scope's enlargement in Northeast Areas is issued and implemented by Ministry of Finance National Excise Office on 16th Sep. 2004. It stipulates to test out the consumption-oriented value added tax in northeast area. It is the favorable policy's provision in the turnover tax region and also the taxation favorable policy's center content. The second aspect is The Notice of Development Northeast Old Industrial Base Business Income Tax Favorable Policy Issued by Ministry of Finance National Excise Office is published on 20th Sep. 2004. It stipulates that the industry companies in northeast area should reduce the permanent assets, intangible assets tenure of use and the indirect taxation favorable policy of deduction limitation before taxation. It is the regulation of favorable policy in company income tax area. So this policy's central content is the advanced attempt in the value added tax reform. And just for this reason, people concentrate their eyes on the meanings of developing old northeast industry base taxation favorable policy to our national value added tax reform and they seldom pay their attention to economical and social aim's effect and duty by macroeconomic control as the taxation favorable policy. So as a kind of territorial taxation favorable policy after the implement of southeast littoral, Hainan special economic zone and Midwest area taxation favorable policy, specially as the first systematical tax favorable policy during tax reform, the systematical research during management is important to discuss what kind of tax policy choice during our national new tax system reform.Firstly, this passage introduces the current tax reform as the key point and introduces this favorable policy under the tax system reform's field of vision. It points out that the tax favorable policy of promoting old northeast industry base is one part of tax reform and also the trial stone of the tax reform. Summarizing the concrete content and characteristic of the consuming value added tax in northeast area, the tax favorable policy of promoting old northeast industry base and its management's expecting effect is projecting as one extremely important part in the tax reform.Secondly, this passage exerts the tax expenditure optimization theory to paralyze the advantage and disadvantage of tax favorable policy concretely with the comparison point. It compares our national other regional tax favorable policy and other developed nation's tax favorable policy, compare the policy's aim and content, adjustment region and method, favorable object and management mainly. It points out that the tax favorable policy of promoting old northeast industry base's advantage and disadvantage in promoting northeast region's economy development and the policy itself's advantage and disadvantage in the different stages of drafting and estimating. Thirdly, the tax favorable policy, which is aimed at promoting old northeast industry base carries out the limited consuming value added tax, which refers to the disadvantage of unequal tax and un-centralized tax system. It also discusses the feasibility of exerting the consuming value added tax in the whole country. Aim at disadvantage of dim aim, too much limited conditions, weak focalization and less attention to the middle and small scale companies during promoting the northeast old industry base, it promotes to strengthen the tax favorable policy plan and makes the technology trials and scientific development to be the main aim of the tax policy. The indirect favorable way is made to carry out the tax favorable policy and incline it to the middle and small-scale companies and realize the economical and social aim of industry adjustment and social equality.Aim at the disadvantage of tax favorable policy's casual management, these reasons render to the disadvantage of casual management and weak duty in the tax favorable policy. It promotes to perfect the tax legislation and publish the tax policy evaluation and paralyzing result and strengthen the tax draft's people participation and observation degree. And it can build up the special tax favorable policy evaluation institute and procedure to make the policy's draft and management in the right orbit.Through the paralyze of promotion northeast old industry base tax favorable policy's example, this passage suggests that we can study and absorb the developed countries experience in tax favorable policy choosing and management during the tax system reform. Through prefect the tax favorable policy legislation and plan the tax favorable policy's content and form reasonably and set up the tax favorable policy evaluation and tax expenditure system that conforms to our national condition gradually. It can plan the tax favorable expenditure budget scientifically to make sure the tax favorable policy's guiding function to economy development and make full use of the tax favorable policy.