The Research On Replacing Business Taxes With A Value-added Taxes

Value added tax and business tax is the two important categories of taxes in the turnover tax system in our country. The tax system promoted economic development at that time.But now it becomes obstacle in the development of service industry.Under in this background the reform of business tax replacing value-added tax is put on the agenda.At present transport industry and part of the production-based services is in the scope of value-added tax.The reform makes initial progress.But some problems that have emerged in the process of reform are needed to be solved.This paper starts from introducing the basic principle of value-added tax and summarizes the necessity of the reform which establishes the theoretical basis broadly. Through the research on the experiment in Shanghai the paper analysis the problem of tax burden,adjustment of the fiscal and taxation system and integration of the administrative limits between land tax and country which offer the direction for the reform.Next it introduces the experience of the process of value-added tax internationally which provide some useful reference for fine-tuning the value-added tax system.At last the article present some corresponding suggestion so as to promote the tax reform.