Effect Analysis Of The Change From Business Tax To Value-Added Tax In Jining City

Business tax changing to value added tax means stop levying business tax to imposing and expanding the current scope of value added tax. It’s also a unique reform in this Chinese Transition Period. In the 1994 tax reform, based on our national conditions, our country created the former tax system in which goods and services are designed to impose value added tax and business tax. After decades of practice, the characteristics, advantages and disadvantages of value added tax and business tax has been clarified. It proves that business tax changing to value added tax is necessary for economic and social development; as for value added tax itself, it’s also a necessary process its transition, spreading and legislation.From January 2012, Shanghai take the lead in changing business tax into value added tax and carrying out reform in some modern service industry. Up to August 2013, the "3+7" industry pilot had been applied in nationwide. Changing business tax into value added tax achieved remarkable results. This reform opened the circle of value-added tax deduction, helps to eliminate double taxation and optimize the tax structure, reducing the burden on taxpayers, thus creating a better tax environment for economic development. It also contributing to industrial restructuring, economic growth and enterprise development in an effective, profound and lasting way. By 2016, changing business tax into value added tax will be fully applied, which means sales tax taxes will be completely eliminated. All of companies’ new real estate will be contained into the value added tax deduction scope to ensure that all industry tax burden can be educed.In this paper, a prefecture-level city of Jining will be cite as an example, by accurate and complete range of digital charts, detailed analyzed the reform of changing business tax into value added tax. In this pilot city, taxpayer number, type, structure, county distribution, warehousing taxes have been taken into consideration. The tax reform is truly an impact to its daily operation, local economic development,and financial system.It also pointed out many problem persisted in this reform, and brought out personal opinions about problem-solving measures and recommendations.In this paper, there are many various method of public management like reading literature, doing research, making qualitative analysis, making comparative analysis, and making case analysis etc. To increase the pilot implementation process as the main line to illustrate, first from the perspective of China’s macroeconomic development strategy grasp the tax reform, second from the microscopic point of Jining City’s figures. All of these show that the situation in detail and demonstrate the economic and social impact of effects, concluded that the full implementation of the business tax changed to value added tax. Lastly, we should achieve a reasonable tax, to be refined improve policies and regulations. We should be clear responsibility to straighten out the relationship between central and local fiscal powers, to strengthen tax collection and ensure that results of the reform, to play tax-control functions to guide the industrial restructuring and local economic development.In my view as a specialist, when completely changing business tax into value added tax, we have to rely on a clear and detailed transitional arrangement policy, make it reasonable to reduce the corporate tax burden. By increasing local property rights, the burden should not bring up the local co-ordinate system with a national of powers value so that the local initiative can be added. By strengthening sectoral cooperation, information sharing, we should strengthen risk prevention awareness and take more efforts to maintain good order of tax system. By strengthening policy guidance, we could enhance the vitality of enterprises. By using this finance and taxation system reform, we could promote local economic development to a higher level.