The Effect Of Consumption Tax And Policy Recommendations

In1994,China establish the new consumption tax to gain public finance savings,revise industrial structures, lead consumption, adjust gaining allocation and protectenvironment. After several reforms, especially the adjustment of2006, the regulatoryfunction of the consumption tax has been strengthened. However, the reform of the scopeof taxation reasonability, the tax rate, the structure of rage and system fall far behind,which has limited the influence of consumption tax.The research on the connection between consumption tax and economic field hasalways been an important part of tax theory and policy. This paper try to figure out therelevance of the consumption tax policy and economic field combined with thedevelopment of domestic consumption tax around the world.This paper has five parts, mainly as follows.The first part is the introduction. It focuses on the purpose and study methods of thispaper. Then it reviews the points about the consumption tax around the world.The second part is the basic theory of the consumption tax. Firstly, it introduces thedefinition, features and functions of the consumption tax. Secondly, it uses the economicmodules to analyze the tax burden and tax destination of the consumption tax.The third part is divided into two levels. The first level is overview of the history ofconsumption tax policy in our country. The second level is mainly the internationalcomparison of the consumption tax. With the comparison of the range of levying,the taxrate, the structure of rage. This paper tries to find out the tendency of internationaldevelopment.The forth part is the most importantpart, it focuses on the influence of the adjustmentof consumption tax with empirical analysis. At first, it draws a conclusion that theconsumption tax makes contribution to financial income. In the second, it uses qualitativeanalysis of the influence on industrial structure. In the Third, it uses qualitative andquantitative analysis of the influence on consumption. Then it finds out that to someextent, there is connection between consumption tax and different income groups. Finally,it figures out consumption tax can correct the external cost and consumption tax incomewhich is related to environment has increased to half of consumption tax income duringthe last five years.The fifth part,based on the former presentation in last part, the author puts forwardsome policy recommendations to strengthen the function of consumption tax.This paper uses different kinds of analysis methods, tries to research on theadjustment of consumption tax and policy recommendations.