The Optimization Design About Consumption Tax System To Promote Green Development

Last century, the world economy industrial development of high energy consumption, high pollution brought great harm to the global environment and resources, growing environmental crisis and resource shortage make people shift attention from simple economic development to human social, economic, environment co-coordinated green development. In this case, the theory of ecological economics, circular economy, sustainable development and green development have become the dominant theory of national economic and social development, the pursuit of green economic development, green social development, eco-green development, etc., become the basic development orientation. And as the large population, China is more lack of resources relative to other countries. According to the data, in2012China’s proven reserves of coal, oil and gas, respectively, accounted for17.3%,1.56%and1.83%of the world’s total reserves; China’s energy intensity which is primary energy consumption per unit of GDP is1.9times the world average; About pollutant emissions, China’s carbon dioxide emissions ranked first in the world as early as2006, and the PM2.5is a serious impact on people’s lives in recently years. Faced with this resource and environmental problems, the state developed green development as ruling concept, and writes the goal of building a green China in the "Twelfth Five Year Plan". To the consumption tax, it is an effective means to regulate the development of production and consumption, so how to reform consumption tax that to play a role in boosting green development has become an important direction of tax reform. Based on this, in the perspective of green development and in accordance with the consumption tax levied and the mechanism of action, the paper inspect our current consumption tax’s effectiveness to promote green development, and draw on experience form international consumption tax system construction, then put forward China’s consumption tax system recommendations for change. The paper including five chapters:The first chapter is introduction. Comprehensive describes the background and research significance of the paper, literature review, the main content of the paper, and the innovation points and deficiencies.The second chapter is the related theoretical basis of green development and consumption tax. This part describes the development process and connotation of green development theory, as well as the externality theory, the double dividend theory, pointing out the theoretical basis of the consumption tax to play the green effect is the theory of externalities.The third chapter is the mechanism analysis about how consumption tax to promote green development. Relying on the theoretical basis of externalities, consumption tax should be oriented to promote green development, and this effect is arising mainly through industrial restructuring and environmental protection. Specific to the guidance function of ecological environment protection, which occurred during the tax change caused prices change so that the consumer change their consumption decisions:the existence of the income effect of making consumers to reduce consumption, the substitution effect makes consumers choose other non-tax alternatives, thereby reducing the consumption and adjusting the consumption structure to promote green development. Secondly, under the theory of supply and demand, consumption tax will play a regulatory role in producer behavior, encouraging producers to change production decisions, thus contributing to the society’s whole industrial restructuring.The fourth chapter is the evaluation about our current consumption tax effect on promoting green development. From the evolution of consumption tax and the power of regulate production and consumption, this chapter investigated its effect of promoting green development. In details, from the perspective of tax evolution, since established in1994, especially after tax revision in2006and2009, consumption tax’s characteristics of "green" is more and more significant, performance is as follows:compare with the consumption tax in1994, the tax lines added wood floors, wooden disposable chopsticks, yachts, golf balls and equipment, high-grade watches, at the same time adjust the lines of oil products, cars, wine, cosmetics, motorcycle, automobile tires in2006, those adjustments are written into law in2009, and rise the oil products and cigarette’s tax rates meanwhile.For inspect consumption tax’s "green" degree, we define the consumption tax greening degree indicator as the seven tax lines which can promote energy conservation and emissions reduction divided by the whole consumption tax revenue, then calculate the consumption tax greening degree indicator increased from29.71%to51.74%when adjust the tax rate of oil product in2009, rise as high as74.15%.From the industry side, we choose the car industry for example to make empirical analysis. The cars are taxed by the classification of its engine, so the change of tax rate will cause a corresponding adjustment to production scale of the relative cars, thus the car industry will adjust within its industry. First, established a mathematical models, then select monthly production of cars and corresponding price index from March2006to June2013respectively about mini (displacement≤1L), small (1-1.6L), intermediate (1.6-2.5L), high (2.5-4.0L) and luxury (displacement>4.0L) cars as raw data and do regression analysis, concluded the linkage between car production and consumption tax rate, and then chose the reform data in2006and2008to fitting the mathematical model and found the both reform are optimize the industrial structure and correct the car’s excessive consumption externalities significantly. Statistics also showing, after increase the rate of luxury cars in2008, luxury cars annual production capacity reduced from445in2008to66in2009, and98in2010.However, compared the extent of "greening" with the international consumption tax, consumption tax in our country are still have a big gap. Performance is as follows:the rate gap between unleaded and leaded petrol is too small, can’t encourage the consumer to spending unleaded gasoline effectively; Moreover, refined oil’s tax rate is far lower than western countries, the unleaded petrol’s average rate in EU was4.48￥per liter compared with1￥per liter in our country, which is bound to have a negative impact on consumption tax’s "greening" effect. In addition, the green tax lines in our country’s consumption tax is only10at present, many internationally accepted tax items was not included in it, such as coal, natural gas, batteries, and solid waste, sulfur dioxide, The fifth chapter is the optimization recommendations about consumption tax system. After the above analyzing, we found that our country’s present consumption tax and green development is inconsistent.(1) the taxation principles are disjoint with the green development;(2) the taxation scope is too small;(3) the rate setting deviate from the economic development;(4) the style of tax contained in retail price is unreasonable;(5) management needs to improve, etc. Based on the status quo of China’s economic and social development and drawing on international consumption tax system design, the new round of consumption tax system optimization suggestion are put forward to solve the above problems. Specific as follows:(1) Re-positioning the consumption tax’s function. In view of the problem of environmental pollution and resource shortages becoming the shackles of economic growth, the current positioning of the consumption tax should be transition from "increase revenue based" to "guide the consumer and industrial structure adjustment based" then to "save resources and protect the environment based", the consumption tax reform positioning in the new period should be to promote industrial structure optimization, energy conservation, and promote the green development.(2) Expand the scope of consumption tax assessment. According to the affordability of the economic, should expand the consumption tax’s scope gradually, in particular, should increase the coverage of "green tax lines". China is implementing a limited type consumption tax currently, taking into account China’s economic development and the international consumption tax system, we can expand it to intermediate type consumption tax which contain20to30tax lines. Such as, gradual increase the aircraft, trucks, commercial buses, boats, used batteries, disposable packaging, phosphorus detergent, plastic bags, pesticides, fertilizers, coal, high-grade solid wood furniture, sulfur dioxide, water pollution, solid waste as well as private jets, sauna, high-grade restaurant, night clubs, horse racing, business clubs and other tax items which in order to promote social justice, according to the capacity of the economy condition.(3) Adjust the consumption tax burden reasonably. Design a scientific mechanism that the tax rate is growth with economic development. Currently, we should focus on rise the tax rate of beer, wine, yachts, wooden disposable chopsticks, refined oil, and reduce cosmetics, motorcycles tax rate.(4) Adjust the consumption tax from the "price including tax" to "price and taxes are separate." In the style of "price including tax", the tax burden is unknown and the tax levied contradiction is invisible, the "price including tax" improved the degree of tax compliance to some extent. However, it’s more important to try to make the consumption tax full play its regulatory role, the "price including tax" collection methods greatly reduce the consumers’sense of tax burden and undoubtedly weakened the consumption tax’s guide functional in green development.(5) Strengthen the tax collection and administration in production processes. Collection tax revenue in production processes can greatly reduce the collection and administration cost, but its disadvantages are also obvious, that is causing the taxpayers searching out ways to evade taxes, so that weakening the consumption tax adjustment function, and resulting in a loss of tax revenue.Tax reform is not undertaken in isolation, therefore, the consumption tax reform should follow the following principles:(1) coordinate the overall layout of the green tax system;(2) accord with the widespread used international environmental tax system. In the long run, the development direction of China’s consumption tax system is a mixture of product consumption tax, behavior consumption tax, specific purpose consumption tax and user fees consumption tax, we should grasp the overall layout in the next step’s deepen reform.