Analysis On China's Export Tax Rebate Policy

Export tax rebate means that the indirect taxes which burdened of theexportgoods in the country refund to export enterprises. It adds no tax to the priceofgoods into international markets, as the purpose is to avoid double taxationoftransnational commodities, and achieve fair competition in the internationalmarket.Based on the purpose of promoting the development of internationaltrade, manycountries have established export tax rebate as a perfect exporttax rebate system, butChina establishes the export tax rebate as a means of macro-controlpolicies and usesit frequently. This is related to China’s actual situation. China’s foreign tradedeveloped slowly when we established the tax rebate system, in order to promotexport, China increased export tax rebate rate. Because of higher export tax rebates,the financial burden is heavy,we reduced export tax rebate rate to ease the financialpressure. In recent years, in order to promote the adjustment of industrialstructure,we implement differential export tax rebates. In these adjustments, theexport tax rebate can solve temporary financial pressure, does not apply. For theadjustment of industrial structure, we should insist on the use of export tax rebatesystem and continues to improve. So this paper considers China’s export tax rebateshould thorough reanalysis.This paper makes the quantitative analysis to the export taxrebate again basedon qualitative analysis. First, the theoretical studies on domesticand foreign exporttax rebate system works as the theoretical guidance of thispaper. Second, it analysesthe transformation both practically and theoreticallyof China’s export tax rebatesystem, which sums up the adjusted direction ofChina’s current export tax rebatesystem. Then, using the empirical methods, itanalysis the impact of the export taxrebate system for exports and industrialstructure separately. On the one hand, whenanalyzing the impact of tax rebateson exports, this paper put the important factorsaffecting the export and theexport tax rebate together to compensate for the lack of previous studies. Theconclusion is that in the policy instruments to promote exports,the impact ofthe exchange rate is greater than the export tax rebate. On the otherhand, underChina’s strongly promote industrial restructuring background, this papertakes thetextile industry and the steel industry as an example with the ECMmodel,resulting that the export tax rebate has far-reaching effects to energysavingand emission reduction. We should continue to adhere to this policy.