New Era Of Value Added Tax System Reform And Prospect

National tax revenue reached42.18billions yuan,including value added tax18.716billions yuan which accounts for tax revenue ratio of44.37%; accounts fornearly half of tax revenue. So the value-added tax is very important. Figuring out thetax on tax reforms must have a profound impact on Chinese economy.As China’s core taxes, the VAT, played an invaluable role in the protection ofgovernment revenue, as well as adjust the macro-economic development process.Since1979, China began to attempt to value-added tax, the theory community debateabout VAT has never stopped. Various controversies even more prominent in1994throughout the country to the production VAT, the VAT main taxes in China affectthe situation as a whole ’economic status, the reform of the domestic government andacademia to its has always been careful, then careful, VAT can be described asdifficult. twice in1998and2002by the international economic situation, value-addedtax transformation almost certain, but stranded, can be called the step a few back fromJuly1,2004the first eight sectors in three provinces in Northeast China’s equipmentmanufacturing industry, metallurgical industry, the VAT pilot started; the second stepin the July1,2007, the country will extend them to the26old industrial base cities ofthe six central provinces the electric power industry, mining, petrochemical industry,quite representative of the six industries trial;July1st, the third step2008, the scope ofthe pilot further extended to Hulunbeir, eastern Inner Mongolia, Hing’an, TongliaoCity, Chifeng City and Xilin Gol League; August2008, China’s Sichuan Province,Wenchuan, suffered a devastating earthquake and our government then has expandedthe scope of the pilot to the earthquake-hit region, the scope of reform involvesSichuan, Gansu and Shaanxi provinces have been identified as heavy disaster and thehardest hit by the51counties (cities, districts). To January1,2009, the time has been basically mature, in the nationwide implementation of the VAT reform, namelythe production-based VAT to consumption-based VAT, allowing the second industrialmachinery and equipment to the implementation of the deductible for tax purposes.Marks since July1,2004, after four,"including the capacity," the VAT reform pilot toachieve a comprehensive promotion.This article is going to analysis the impact on tax reform of corporate behaviorand economic development through the analysis of tax reform from1994to explorethe possible problems and Contribute to China’s tax reform.