The Research On VAT Rata Reduction

China has fully implemented “replacing business tax with value-added tax(VAT)” on May 1,2016,realizing the full coverage of goods and services by VAT.In the process of “replacing business tax with VAT”,government has set too many grades of the VAT rate: At present,we set 17%,11%,6% except the zero tax rate.It is mainly concerned with the development of economy.Although it is reasonable that the existing tax rate of value-added tax,the disadvantages of too many grades of the VAT rate have become more prominent after entering the era of replacing business tax with VAT.It will not only distort the VAT tax neutral,lead to unfair tax burden between different industries and affect the allocation of resources,but also make tax administration more complicated.Domestic and foreign scholars all agree that it is the ideal model that a standard tax rate plus a preferential tax rate,but there are different views on the level of tax rates.Therefore,this paper proposes three kinds of solutions based on the current VAT rate,choosing the optimal solution from the effect of fiscal revenue,the division of labor and the adjustment of industrial structure.This paper use the 2012 China input-output table as research data,The 42 industrise in the output table are divided into two categories according to the middle output ratio of each industry: Industry 1 are suitable for standard tax rates and Industry 2 are suitable for preferential tax rates.Then,we put forward three kinds of plans :”17 + 11%”?”17 + 6%”?”11% + 6%” based on of the current VAT rate in China.Constructing VAT tax base,combined with the actual deduction mechanism of Chinese value-added tax model.From the effect of fiscal revenue,plan 1(17% + 11%)are optimal choice,From the effect of division,three plans will significantly improve the burden of VAT of R&D design link and the transportation links.From the view of the optimization effect of industrial structure,three plans will increase the burden of VAT on producer services and life service industries.After comprehensive analyzing,The “17%+6%” plan is the optimal choice.Then simulating the financial revenue of every provinces based on optimal tax rate.Exploring the causes of the change of fiscal revenue in different regions by the main component regression method.In order to implement the reform of VAT rata reduction smoothly,the state should take measures to support the development of the third industry by financial subsidies or tax preferences,avoiding the tax burden in these industries will increase considerably in the short term.At the same time,we could develop the real estate tax as the new local tax to make up for the fluctuation of financial revenue and promot VAT legislation.