Fuel Consumption Tax Levied Economic Effect Research

In the year of2009, China has carried out the reform of the fuel consumption tax, it changed the road fee system into the tax system which is mainly consisted by the fuel consumption tax. On one hand, such reform can improve the efficiency of the economic growth; on the other hand, it can realize the goal of the environment protection and the sustainable development. The fuel consumption tax targeted at the adjustment of the transportation, which would increase the level of utility of natural resource and diminish the negative effect of the industrial development, thus promote the perfection of transportation.The first part in this paper studied the background and significance of the fuel consumption tax, as well as the current international and domestic literature about the fuel consumption tax; in the second part, we have analyzed the history and current situation of the Chinese fuel consumption tax. Thus pointed out the necessity and significance of the fuel consumption tax for our country.The subsequent third part analyzed the sub-economic effects of the fuel consumption tax in three small portions. Firstly, we conducted the empirical analysis of the fuel consumption tax, based on the econometric model, we can see that the fuel consumption tax has a positive effect on the transportation development, even if there are negative aspects, but their overall well-being is improved. Secondly, the paper conducted the analysis of the effect of the residents’ welfare, based on the Statistical Yearbook data analysis, we can conclude that China’s current fuel consumption tax has a progressive effect, it can generally meet the "longitudinal fair" standard. Thirdly, we did the empirical analysis of the relationship between fuel consumption tax and the overall economic development. Due to the relatively short analytical period, the impact of the fuel consumption tax is unclear, but the econometric model tells that they are positively correlated.The final part analyzes the problems currently existing in the fuel consumption tax based on the results of quantitative analysis of our current reality. Based on those problems, we put forward some solutions: the first solution is to improve the environmental tax system, strengthen management and supervision of the fuel consumption tax; The second solution is to reduce the tax effect of the fuel consumption tax on other industries; the third solution is to reduce the polarization; the fourth solution is the establishment of an effective financial security mechanism.