Levying VAT Instead Of Business Tax To The Research On The Effects Of Local Taxation In Shenyang

The pattern of business tax and VAT coexistence causes the problems of doubletaxation,deduction chain rupture,services export restrictions,and impedes manyindustry enterprises and even the whole business tax at present.A sound system ofVAT not only has the full deduction mechanism,but also the scope to cover all thelinks to the production, circulation and consumption.The State Council decided tocarry out the pilot work of levying VAT instead of Business tax step by step inOctober2011,chose Shanghai city firstly,and spread out across the country in August2013,as to solve the problems are caused by the law coexist.Shenyang city,Liaoningprovince was classified into the scope of the pilot because of the third stage enjoy thefruits of reform of the city.Therefore,the pilot work in Shenyang is less than5months,still need to summarize the experience of the piloting areas,couple with itsown actual situation,to achieve the pilot work smoothly.Although levying VAT insteadof Business tax can bring enterprises and industry many benefits,the local tax revenuewill shrink substantially after reformation,due to the business tax is local,while VAT isthe central and local Shared tax,local government enjoyed only25%of the share.Howto make the local governments to get rid of this dilemma,especially this kind of highdegree of dependence on business tax like Shenyang city,is key points and difficultiesof the current study.This article analyses how to solve the changes of local tax revenue because oflevying VAT instead of Business tax in Shenyang from the perspective of Shenyangcity.This paper is divided into seven parts altogether,the first part introduces theresearch background of this paper,significance,research methods and innovations,andsummarize the relevant literature review of scholars both at home and abroad.Thesecond part mainly introduces the related concepts of levying value-added tax insteadof business tax,theoretical support of reformation,the pilot content of reformation,andthe pros and cons of reform,lay a theoretical foundation to the research of thisarticle.The third part mainly discusses the overall impact of local taxes on levyingVAT instead of business tax,grasps the reform effect from the macroscopic angle.Thefourth part discusses the specific effects of this reform on local tax,and the influenceof the business tax burden of the enterprise and industry,and to what degree ofinfluence on the local tax.The fifth part summarizes the problems arising in the courseof reform.The sixth part is based on the earlier research,puts forward thecountermeasures to cope with the impact or problems,tries to solve the plight of the local governments.The seventh part is the summary of full text,and outlook for futureresearch.