Study On The Impacts Of China’s Export Tax Rebate

Export rebate is a tax policy that according to the tax law of a country or region, the tax authority refunds indirect tax such as paid-up value-added tax or excise tax generated from various links of domestic production and circulation on goods which have been applied for export and left the territory before their export, to export enterprises. As a fiscal stimulus policy frequently used in international practice and international trade, it has been developing in China for more than 30 years.Since the implementation of export tax rebates on April 1st, 1985, the policy of export rebates has been influenced by national macroeconomic regulation and control policy with the continuous deepening of the Reform and Open and the development of domestic economy. After several adjustments, export tax rebates have kept providing impetus for fast, continued and healthy development of China’s foreign trade and national economy. So far, to solve the delay-paying problem and play the role of export rebates in adjusting export commodity structure, the policy of export rebates in China has been in a changing process and even affected macroeconomic environment because it is widely relative to the interest of various parties. Therefore, the change and modulation of the export rebate policy are often closely watched by all circles of the society.So far, the connotation of export rebate policy has changed from simply encouraging export to a flexible policy which not only encourages export but also restricts it. It has become am important macro-control means for China to adjust import and export trade. However, as the continuous development and improvement of China’s export rebate policy in recent years, controversy about its effects among theorists is also prevalent. There is a theory that current export rebate rate should be reduced to ease the enormous financial pressure it brings. And there is also a theory that the present export rebate policy has many problems in itself and should be canceled. While there are more scholars who are inclined to the point that we not only shouldn’t cancel export rebates, but should further promote it until the realization of complete refund.What’s corresponding to the controversy in academia is a serious of problems exposed during the implementation of export rebate policy. With the constant growth of the amount of China’s foreign trade, the adjustment of corresponding export rebate rates is more and more frequent. The sharp increase of China’s export draw back has contributed to great financial pressure on national finance and hence led to various problems like lagging-behind drawback and huge tax arrears, even regional chaotic phenomena like “less taxation more drawback” or deceiving tax in export.This paper focuses on controversies about export rebate policy in academia and various difficulties during the implementation, consults to and draws on foreign experiences, fully relates China’s conditions, and reasonably summarizes problems existing in China’s present export rebate policy, based on the theoretical and empirical analysis of export rebates. Besides, the paper empirically analyzes the effectiveness of export rebate(duty-free) policy taking Shandong’s data of drawback and foreign trade export over 20 years as an example. The paper consists of six chapters. First of all, the writing background, the significant of the topic and the research degree in existing literatures at home and abroad on this topic is briefly introduced in the introduction part and a brief comment is made on them. The second chapter is about the basic knowledge of export rebates and mainly elaborates the concept and characteristics of export rebates, the comparison between export rebates and other export incentives, the theoretical evidence of export rebates, the economic analysis and historical development of export rebates, and establishes a theoretical foundation for the latter chapters; the third chapter empirically analyzes the economic effect of export rebates, and demonstrates the influence of export rebates on foreign trade export on a macro level. On a micro level, mainly based on tax fraud at the enterprise level, the chapter establishes a game model between export enterprises and tax authorities and analyzes a range of factors affecting tax fraud in export; the fourth chapter raises some problems existing in China’s present export rebate system; the fifth chapter summarizes general rules of evolution of export rebate system in developed countries and puts forward the reference meaning in our country; the sixth chapter, focusing on a series of problems existing in China’s present export rebate system, raises a series of measures to perfect export rebate system through international comparisons.