On The China's Export Tax Rebate Policy Adjustment's Influence On Local Foreign Trade

Export tax rebate refers to a kind of mechanism system in which tax department rebates the indirect tax to the exporter, making the export commodities enter the international market and participate in the international competition for not including tax prices. Its purpose is to strengthen the competitive power of the export commodities. It is an international practice and is adopted far and wide by a lot of countries and regions in the world at present.Since the implementation of the export tax rebate policy in 1985, the implementation of this policy plays an important role in reducing production cost and expanding export for our export enterprises. However, the burden mechanism of export tax rebate of our country is unfavorable to the scientific and normal management of export trade, and the export tax rebate structure does not meet the optimized demand in industrial structure adjustment, the number of export tax rebate goes beyond the ability that the state revenue bears, which especially lies in the owing taxes problem of export tax rebate of our country. Under such conditions, the country carried on the great reform to the export tax rebate mechanism in October of 2003. The new policy follows the principle of "new account not owed, old debts to be returned, perfect the mechanism, bear together, promote the reform, and bring about an advance". During the following several years, a number of adjustments have been made. These structural adjustments are among the macro-adjustments implemented by the state council.The export tax rebate mechanism is a double-edged sword. On one hand, the new export tax rebate mechanism has accelerated the speed of refund of tax rebate and enterprise's fund, helped to optimize the structure of export product, accelerated the paces of industry upgrading, promoted the key competitiveness of the export product of our country and helped to alleviate the pressure of the national financial deficit. On the other hand, the new export tax rebate mechanism has brought some new problems too. (1).Ihe cost raises, the profit-making space reduces, attack the enthusiasm that enterprises export is harmed;(2)The reform of the bear mechanism in export tax rebate, has certain influence on fiscal revenues of the local governments at all levels, which may produce new local protectionism;(3) To encourage the transition from ordinary trade to processing trade of the export trade way, is unfavorable to the adjustment of the structure of whole export trade of our country.Through the use of the combination of standardized research and empirical study, the article first establishes the analytical framework of public policy adjustments, and then through the application of public policy theory, analyzes the basis, content and influence of China's export tax rebate policy adjustment, and in the end the empirical analysis of the influence of the adjustment of the export tax rebate policy on Yancheng's foreign trade is made.