Research On Tax Institution In Chinese Tobacco Industry

This dissertation consists of four chapters. The first chapter analyzes comparatively several general economic means to solve the external factors of tobacco from the perspective of tobacco externality and draws a conclusion that tax revenue is the best means to solve the external factors of tobacco. The second chapter introduces present situation of China tobacco industry and tobacco tax system changes and analyzes the impact of the latter on the former in order to expound the influence and restriction of the existing tax system on the development of China tobacco industry. The third chapter makes a comparative analysis of related experience of the world main tobacco tax systems, analyzes several aspects of tobacco industry tax policy of developed capitalist countries which can be used for reference and comes to an enlightening conclusion. Based on the premise of China tobacco industry development, the fourth chapter focuses on the concrete schemes of the tax system of China tobacco industry, and briefly expounds the monopoly system, system of planning, the reform of state-owned enterprises and other issues which exert significant impact on the implementation of the tax system..The tobacco is a kind of special consumables, which brings some external factors. The paper analyzes the reasons of external factors of tobacco, to find means to treat external factors of tobacco inevitably found by each country. The paper analyzes the reasons of external factors of tobacco from the three aspects of human’s limited rationality and opportunism behaviors, the asymmetry between cost and profits of tobacco consumption, the government’s limited rationality and broker nature. It makes an elaboration and a comparative analysis to various economic means, such as direct control, charge, issuing smoking license, tax, and so forth, to solve the external factors.Since the reform on system of tax distribution, various special and complex relations of distribution of tax revenue interests and benefits, such as between the central and the local, the government and the enterprise, the industry and the commercial, has formed involved in tobacco taxation. The special relations of distribution of interests and benefits have profound effect on the fine development of tobacco industry. There are profound economical background and reasons for the formation of the above mentioned present situation. Through analysis, the author thinks they include:First, the stipulations of tobacco monopoly system enable the production and marketing channel of cigarette to become scarce resources, cause the formation of administrative monopoly, repelled the market competition, and cause lower business management efficiency; Second, because the local authority is avid for increasing its own financial revenue and solves the unemployment problem to maintain a stable social environment, it is inclined to carry on the widespread administrative intervention to the tobacco business. Third, under present administrative and financial mechanisms, cigarette productive plan becomes valuable, it’s hard to adjustment it for the powerful local and enterprise resistance. Objectively, it seems to protect the backwardness and repel competition, but in fact, it doesn’t favor the growth of advantageous enterprises and superior brands; Fourth, flaws exist in the design of present tobacco tax system. The structure of high tax to fine brand and low one to infamous brand may think about the interests and profits of the massive consumers, but in fact, it demands too much on those who are doing a good job and protects the backwardness. At the same time, the successive reform on tobacco industry tax revenue has not radically change the unjust taxation between enterprises and brands, and easily causes the artificial adjustment to the tax base, and drives enterprises to frequently replace product brand, name and specification and increases massive transactions expense,In the developed capitalist countries, the regarded first great excise tax of tobacco industry has the following several characteristics:First, the distribution of cigarette excise tax between the central and the local is levied in accordance with different institution stipulations and channels. As a rule, the central excise tax is levied at the links of cigarette production and import, and local at the links of wholesale and retail. The separation to local authority and cigarette production facilitates the circulation of cigarette and is helpful for the development of the enterprises and brand growth; Second, the fixed-sum tax rate adopted by most countries or taken as a main mode, is advantageous for the technology advancement of cigarette enterprise and the product structure optimization; Third, the excise tax levied from the cigarette manufacturer is based on ex-factory price, the cigarette retail merchants on retail price, so the tax base is clear without artificial adjustment of tax base phenomenon and creates a fair competition environment for enterprises; Fourth, the central and the local separately levy cigarette excise tax with their unique taxation object and levies authorities, which guarantees the central and local financial benefits so that they won’t disturb each other, and there is no complex game relation on cigarette taxation profits between the central and the local and between locals; Fifth, the cigarette excise tax is strictly managed and special cigarette excise tax administrative personnel are provided to strictly levy or control the tax according to the tax law.On the adjustment of the institution of tobacco industry tax, the author proposes three specific plans:Firstly, there is no relation between the change of tax return for the local by the central authority and the change of tobacco value-added tax and excise tax, the increased part of the two kinds of tobacco tax should be taken as the financial revenue of the central authority; Second, changing and adjusting levying links of tobacco excise tax, changing the current levy at the production link into sale link; Third, separating the cigarette excise tax from the returned cardinal from the local tax by the central authority, establishing business entity of China National Tobacco Corp., and complying with the actual effect quota on the cardinal by the cigarette excise tax, the central authority should define a fixed return compensation for the local, which should have no relation to the change of local cigarette excise tax.To thoroughly settle the problems of tobacco industry, reforms on financial administration system, tobacco monopoly system, tobacco planning system and state-owned tobacco enterprises must be carried on based on the reform on current tax institution of tobacco industry.