| Officially Lunched on January1,2012, the Shanghai business tax levy VAT pilot set offa new round of tax reform. Since then, Beijing, Hubei and other provinces and cities have alsoapplied for pilot. Based on the experiences of the pilot provinces, the State Council pushedforward nation wide full implementation of the pilot on1August2013. According to the"Twelfth Five-Year Plan", by2015, the VAT will cover all the existing business tax industry.Business Tax VAT is not only a continuation of VAT, but also a very important tax reform inthe financial aspect. From tax reform perspective, the VAT has ended the phenomena of theco-existence of Business tax, value-added tax, and unified the turnover tax field. From theaspect of enhancement of enterprise vitality, this revolution will reduce tax burdens of mostenterprises, which helped speeding of the acceleration their capital accumulation. It alsobalanced tax burden of the three industries in the perspective of industry, promoting industrialdivision and integration. This reform also lead to the re-form the central and local reconfigureproperty rights, accelerate the construction of local tax system, leading to the balance andunify of powers between central and local on financial aspect.As a great re-form with over-all influenced to all aspects, VAT will change not only themain body of microscopic economic activities, but also greatly affect the governmentindustrial planning and performance of government functions. Based on the analysis ofexperiences VAT in Shanghai this article will analyze the successful experiences, and shortpoints which need to be amended. And also focus on the possible economic impact on Xi’ancity. Based on the widely study of VAT, and with proof of real data, this article representedthe advantage and disadvantage, drawing to the conclusion that the perform of VAT shouldtake very serious measures and analyze problems occurred in the process, to minimize theNegative impact which the VAT will brought upon. |
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