Impact Of Relocation Of Key Steel Enterprise On Local Tax Sources

In recent years,the issue of air pollution has become a problem of social concern.As enterprises in a high-polluting industry,the steel enterprises have become the focus of our attention.At the same time,the steel industry is a secondary industry with heavy labor and heavy assets,and for those stated in large-scale city,their development become increasingly contradictory to the development planning of large-scale cities.In addition,with the slowdown of industrialization and urbanization in our country,the growth of the steel industry is declining,and the problem of steel overcapacity needs to be solved urgently.In order to solve these problems appeared in the steel enterprises,the relocation of steel enterprises in large-scale city has become a common phenomenon,which brings impact to local tax sources.This paper is to study the relocation of key steel enterprises on local tax sources by the case of Jinan Steel Company.First of all,we got the data of tax,income and profit of Jinan Branch in the past six years from tax bureau of Lichen District of Jinan City and Shandong Steel Group Co.,Ltd.And we also obtained relevant documents about relocation of Jinan Steel Company.Based on these information,we make a description and analysis on the organization structure,the relocation process,the revenue and the tax contribution of the company.We find that Jinan Steel Company has brought an important contribution to the local revenue of tax,but the contribution is declining.Secondly,we define the behavior characteristics of stakeholders,which includes enterprises,local government and local tax bureau.Then this paper conducts a game analysis based on the relocation of headquarters of Jinan Steel Company and gives the conditions for different choices of headquarters.According to the theoretical analysis,the relocation of headquarters is related to the value for government and local tax bureau of Jinan city and Rizhao city,and the preference of Jinan Steel Company to the headquarters will also affect the final result.Thirdly,the paper analyzes the tax effect of the relocation.The analysis shows that in the short term,the change of VAT is the main factor,and it is estimated that the relocation in the short term will bring a tax loss of 3 to 5 billion yuan.In the medium and long term,the headquarter economy can retain 2 to 2.5 billion yuan of tax revenue,and under the economic tax sharing policy,50%to 70%of the tax revenue can still be remained.At the same time,according to the forecast,the new industry will bring more tax sources than Jinan Steel Company.Finally,based on the above analysis,this paper makes a conclusion and then puts forward some suggestions to deal with the relocation of Jinan Steel Company and strengthen the construction of tax sources of Jinan City.