Study On The Development Of Tertiary Industry To Tax Revenue Growth

Industrial structure is closely related to tax revenue .The change of industrial structure will promote economic growth so that the tax revenue will grow. Meanwhile, industrial structure will also promote the tax revenue growth directly. The phenomenon has been proved by many developed countries.Since 1950s, the proportion of tertiary industry in United States has increased while the proportion of primary industry and secondary industry declined. Japan has the same trend in 1966 when GDP per capita reached 1000 U.S dollars, and so has Taiwan in 1976. The structure change has the same feature that the proportion of primary industry declined and the proportion of tertiary industry increased. After analyzing the industry structure change and tax revenue growth in China under the instruction of macro tax burden theory and by the means of econometric, the conclusion appears that the proportion of tertiary industry has positive relationship to tax revenue, and the optimization of industry structure could increase tax revenue. However, the tertiary industry is restrained by some factors in China such as less market in tertiary industry, low proportion of productive service, and too heavy tax burden in finance industry. According to analysis, strengthening market power, developing productive service, and lowering tax burden in finance industry could optimize industry structure so that promote tax revenue growth.