China's Export Tax Rebate Policy Research

Export Tax Refund (ETR) has been being the focus concerned by the Government and enterprises since 1994, when the new tax system began to run. The Government had to lower the rates of ETR in 1995 and 1996 respectively because the refund-cheating was rampant then. Lowering the rates of ETR can lessen the burden of public finance, but at the same time, it increased the costs of exports and the goods became less competitive internationally. After 1998, Government raised the rates of ETR successively to expand the export trade and stimulate the domestic economy.At the same time, the agreement of WTO stipulates that the volume of ETR is not Export Subsidy as long as it doesn't exceed the taxation. Also, we should recognize that economic policy is changing and consistently perfected with economic circumstance and require. After China's entry into WTO, China has to adhere to and perfect the policy of ETR. Under this condition, the rates of ETR change so frequently that the export enterprises cannot plan their production in the long run and the seriousness of tax law is destroyed. That means that our government hasn't found the inherent law of ETR. This dissertation manages to start from the basic concept of ETR, analyze the theory of ETR and probe into the reforming train of thought of ETR system in China, based on economic analysis and demonstration research of ETR in our country s. the framework of this dissertation is as followings.Part I : Basic Theory and Economic Analysis of Export Tax RefundThis part is the base of the whole thesis. Section one gives a definition of ETR of ETR. Section two is the theory of ETR. The last section is the general analysis of ETR and game theory.Part II: The History, Existing State and Problems of China's Export Tax Refund SystemThis part is divided into three sections. Section one reviews the history of China's ETR.. Section two summarizes the main contents of the existing ETR. Section three analyzes the problems of the existing ETR, including that the policy of ETR changes too frequently, and the ETR system itself lacks in necessary harmony with related economic policies, etc.Part III: The Demonstration Analysis of China's Export Tax Refund SystemThis Part is divided into two Sections. Section one is the demonstration analysis of the relationship between the export trade and GDP. Section two is the demonstration analysisof the relationship between the export tax refund and the export.Part IV: Advices of perfecting the Reform of Export Tax Refund in ChinaThis part is the conclusion of this thesis which is divided into three sections. Section one emphasizes the necessity of perfecting the Reform of Export Tax Refund in China. Section two includes several issues during the program of perfecting the Reform of Export Tax Refund in China. Based on issues of the ETR reform, it is suggested that the Strategic ETR should be the direction of China's ETR reform. As a conclusion, the reform on the ETR should be taken by steps.