Study On The Tax Policies That Promote The Trade Development Of China To Asean

On January1,2010, China-ASEAN Free Trade Area (CAFTA) formally has completed, which opened the new starting point of trade development of China to ASEAN. With the completed Free Trade Area and the implemented the related policies and measures, bilateral trade between China and ASEAN will develop rapidly. In this paper, we study tax policies that promote the trade development of China to ASEAN.We use the comprehensive methods of theory and empirical analysis. In the theoretical analysis stage, we mainly analyze the general theory that the tax policy influence international trade development on the basis of the literature summary in the chapter of introduction. In the empirical analysis phase, we analyze the current situation of the trade development level of China to ASEAN and the tax policy factors that affect the bilateral trade development with founding that bilateral trade development level are growing fast. What’s more, tax policy is one of the important factors that affect the bilateral trade development level, but China’s tax policy have such following questions in effecting bilateral trade development:relatively lack of special tax policies only for trade development of China to ASEAN; Still existing a certain degree of tariff barriers; value-added tax and consumption tax policy of import is still inadequate; lower tax rebates of export and tax rebates are not thorough enough; bilateral trade tax policy coordination pace is slow.Then, on the basis of the above analysis, this article uses the trade gravity model with the panel data to metrically and empirically analyze that China’s tax policy influence the bilateral trade development. The empirical analyses find that different tax policies have different influences on trade development in nature and size:remove tariffs will promote the trade development of China to ASEAN; value-added tax and consumption tax policies of import will hinder the development of bilateral trade but the impact is not significant; Increase export tax rebates will promote the bilateral trade development; increase of capital factor tax rate will hinder the development of bilateral trade; On the contrary, increase of the labor tax of tax rate is good for bilateral trade development. In addition to the last item, these results are almost the same with the conclusion of the previous analysis.Finally, we conclude that some policy Suggestions to promote the development of bilateral trade development on the basis of previous analysis. These improvement Suggestions mainly involves three aspects of contents:trade tax system and policy, tax policy coordination and cooperation, trade tax collection and management.