Research On Fiscal And Taxation Policies Of Promoting The Development Of Circular Economy

In recent years, China's economy is keeping a sustained and rapid growth. However, as economic growth mode has not changed radically, the rapid economic growth in China is largely at the expense of resource and environment, which brings about a series of problems. For example, resource utilization efficiency is lower; the growth in emissions of industrial waste water, waste gas, and solid waste is very fast; in addition, there exists some other problems, such as wetlands disappearing, farmland shrinking, water loss and soil erosion, and serious desertification and so on. These problems have become a hinder for realizing new-type industrialization, building a moderately prosperous society in all aspects, and ensuring the sustainable development of economy and society. The basic way of solving these problems lies in changing traditional economic growth model with the characteristic of high investment, high emission and poor efficiency to realize the sustainable development. Consequently, under the constant exploration and practice, as an emerging economic development model, circular economy has become the road of the first selection. It advocates an economic development model, which is founded on the constant reuse of matter, requires us to control the waste from the source of production and consumption, and recycle and reuse it, in order to achieve its aim at high use and low pollution.As a new type of economic development model, circular economy overcomes the vicious circle on mass production, mass consumption, and mass obsolescence for traditional economy, is conducive to improving resource utilization efficiency, and minimizes waste emissions, in order to realize a win-win result of society, economy and environment. However, the problem concerning circular economy is a problem with the characteristic of externalities. Relying only on market mechanism has not achieved its aim at realizing most optimum distribution of resources and controlling environmental pollution. Consequently, it is very important to gain the support of relevant government policies, especially fiscal and taxation policies. Fiscal and taxation policies are the accelerant of circular economy development. Every country in the world makes a series of fiscal and taxation policies in course of promoting the development of circular economy, and forms a pattern of steering and rowing. Now circular economy in China is at a very low-level early stage. Thus, fiscal and taxation policies have a very important effect on supporting and guiding the development of circular economy. On the basis of taking example by foreign experience concerning fiscal and taxation practices of promoting the development of circular economy, this article recognizes the difference of promoting the development of circular economy between China and other countries, and puts forward some relevant policy proposals on promoting the development of circular economy in terms of realistic situations in China.This paper is divided into six parts:The first part is introduction, which introduces the background, significance, current situation of the research at home and abroad, the research method and article frame; The second part is an overview of circular economy, which mainly discusses trace to the source of circular economy, the connotation and characteristic of circular economy, and the current situation of circular economy; The third part is an internal relation between fiscal and taxation policies and circular economy, which includes in detail as follows:the development of circular economy needs the support of fiscal and taxation policies, and circular economy will be conducive to perfecting fiscal and taxation policies; The fourth part is an analysis of current fiscal and taxation policies on promoting the development of circular economy, which carries on research to main problems existing in promoting the development of circular economy; The fifth part is fiscal and taxation policies of typical countries in promoting the development of circular economy. Based on fiscal and taxation practices of typical countries in promoting the development of circular economy, we may get the abundant experiences; The sixth part is suggestions for fiscal and taxation policies of promoting the development of circular economy. The paper puts forward some operational policy suggestions in terms of fiscal policies, tax policies and supplementary measures.