The Influence Of Vat Expansion On The Industry Development And System Design

As the most largest tax in our country, value added tax revenue accounts for more than50%in the whole, so it has an important position in the turnover even the entire tax system. Value added tax have also played an important role on the aspects such as raise income, adjust economy and integrate resources. This tax system has been in constant reforming and improving since its budding. This expansion reform is of great significance, and because of its wide range and deep dimension, the reform attract wide range of response and attention in the academic circles and society.This paper first simply set up the theoretical framework related to value added tax. And it also introduces the develop history of value added tax system based on times, analyzes the reasons of every reform also the effects they gained, at end summarize the general pattern of the system development. During the constantly improving historical process of value added tax system, this expansion reform is not only the unescapable trend, but also the necessary requirment to the perfection of value added tax system. By the introduction of experimental regions’ expansion situation, this paper analysis the positive effects to the development of economy and the advancement of society from theory and empiric two aspects, affirms the great performances the reform gained through its carrying out in experimental areas.By constructing vector autoregrssion (VAR) modals, this paper analysises and compares value added tax and business tax’s different influences on the industry development in our country, tests the stability of modals. This paper also uses impluse response function and variance decomposition to analysis the contribution degree of every tax to the both second and teriary industry. The conclusion is that value added tax plays an important stimulative effect on the development of secondary and tertiary industry which demonstrates the scientificalness of this value added tax expansion reform.Although this value added tax expansion reform has scientificalness and rationality, but because the time since this reform begin is not so long, there still exposes some problems which unable to ignore. For example, some industries’ tax burden even appears increase instead of decrease. The rate of taxation and the standard’s setting to distinguish value added tax general taxpayer and small scale taxpayer are still need to discuss about its scientificalness. The impact to price and loacl financial revenue is also not allow to disregard. So the distance to the really impeccable tax system is still so long and has many obstacles. Based on the analysis of previous prombles, and in order to move forward to perfect the taxation, this article puts forward the fundamental principle of value added tax expansion reform, raises some compostion of taxation elements, incluing the tax scope, tax rate, general taxpayer’s decision criteria, the range of input deduction and tax preference policy. At the same time, cooperated with law, the divide of public revenue between central government and local government, the levy and manage of tax and revenue office’s setting, this paper designs simple path of expansion reform, present the short term, medium term and long term goals, carry out the reform step by step,evolutionary put the reform into effect, continuous deepen the tax system reform.