Study On The Tax Policy Of Unifying Urban And Rural Tax System For Transitional Stage

The issue of "Peasant, Countryside, and Agriculture" is the key of Chinese Modernization. And as an important way of macro-control, the tax policy should play its role in solving the problem of "Peasant, Countryside, and Agriculture". The tax policy of unifying urban and rural tax system for transitional stage is a buffering policy from the tax-free stage after the elimination of agricultural tax to the stage of unifying urban and rural tax system. Its function is to gradually eliminate the unreasonable tax burden of farmers, to promote agricultural development, to increase the income of peasants and to maintain social stability in rural areas. What's more, it will lay a good foundation for the unity of taxation between town and country. On the one hand, through adjusting income distribution, guiding the flow of resources, and fairing the tax burden, it will bring about a great advance in agricultural production and improve the level of industrialization, and progressively accelerate the development of agriculture once and for all, thus increasing the income of peasants, and maintaining the rural social stability. On the other hand, the harmonious development of urban and rural economy, and the steady improvement in tax policy, also laid the economic and policy basis for the unity of urban and rural tax system.This paper analyzed the necessity and feasibility of implementing the tax policy for transitional stage according to Chinese agricultural tax policy and its problems existed before and after the elimination of agricultural tax, and designed the tax policy for transitional stage based on a typical survey to a certain district with using the experience of Japan and Taiwan for reference. The general idea is to adjust and perfect the present tax policies, and achieve the initial unity of some tax categories. Formulating the tax preference and subsidy policy for farmers, and ruling out most of the low-income farmers from the tax collection scope, so as to reduce the tax burden for farmers. Specific design takes the adjustment of value-added tax (VAT) as the dominate factor, and collects VAT on the agricultural products that entered links in circulation chain. On this basis, the government should collect individual income tax on the net income of farmers. Meantime, through adjusting and improving the present policy of land-use tax and house property tax, it will gradually form the tax policy for transitional stage that take VAT as the main body, and the income tax and land-use tax as the supplement.This paper brings forth new ideas in this aspect that analyzes the problem of the tax policy of unifying urban and rural tax system in transitional stage, and uses the methods of comparative demonstration, investigation and analysis to design the specific tax policy for transitional stage. Firstly, we should reform the VAT policy. The actions include expanding the collection scope of VAT to countryside, keeping the integrity of the links in circulation chain, and gradually eliminating the unreasonable tax burden of farmers through tax rate preference and subsidy of VAT. Secondly, we should introduce individual income tax. The government levies tax on the net income by the peasant household, and rules out the low-income farmers from the tax collection scope through the deduction of expenses and tax threshold, in order to reduce the income gap in the countryside. Finally, we should adjust the property tax policy. For one thing, our government should collect the land-use tax on the extra contracted land from farmers with preference in tax rate, for another, they should adjust and perfect the present house property tax policy gradually with no tax from farmers currently.