Study On Optimization Of VAT Rate After China's Overall BT Transfer To VAT

Since May 1,2016,part of industry who paid business tax all have paid VAT,which marks that replacing the business tax with a value-added tax has completed in China since 2012.The event that business tax is replaced with VAT is in full operation made that this important link of VAT expanding circumference has basically completed.As our country's cargo service main tax category,its significance has been further strengthened.Since business tax is replaced with VAT,acting point of VAT reform has also changed and the reform of VAT rate comes into our view.In order to guarantee to smooth implementation of replacing the business tax with a value-added tax and stabilization of fiscal revenue,part of experimental industry in this process apply general rate of 11% and 6%,which makes that applied rate of VAT general taxpayer has four gear.Many grade rate structures and rate difference weaken VAT neutral interaction and damage management efficiency.Based on many problems of VAT now,reforming VAT has reached an agreement.However,which rate structure is the most suitable and how to confirm rate level have become valuable research topics.This paper starts with the basic principle of tax,puts forward possible rate optimization schemes by comparing different rate internationally,and analyzes different schemes from the point of fiscal revenue,economic efficiency,revenue allocation,which makes that this paper has much theoretical significance and practice guidance significance.This paper statistics VAT condition of part country which begins to collect VAT and finds that many countries of east Asia,Oceania,Africa adopted single tax rate.As the areas with the earliest origin of VAT,EU countries mostly adopted multi-range tax rate except Denmark.Taking example by international experience of VAT rate setting and combining with Chinese condition,the paper designs four prioritization schemes.Firstly,on the basis of 2012 input-output table,the paper simulates to calculate the influence of different prioritization schemes to fiscal revenues by it,and finds that this influence is very great.So when to reform VAT rate needs careful consideration.Secondly,the paper empirically studies the relationship between VAT and economic growth by establishing econometric model,transfers VAT and business tax to VAT from different optimization schemes,and use it to judge the influence of economic growth from optimization schemes.We find that single tax rate which has theoretical advantage has great promotion to economic growth.Finally,the paper simulatesincome and consumption of different income hierarchy,calculate the figure that VAT tax accounted for the proportion of disposable income under simulation,and use it as reference point of VAT revenue allocation's regressive nature.We find that lower rate can help relieve VAT revenue allocation's regressive nature.From different points,different optimization schemes all have advantages and disadvantages.That how to make choice needs concrete analysis according to the actual situation,holds top-level design,and completes coordinated reform work.