Research On Tax Policy To Promote Supply-side Reform Of China’s Steel Industry

In the ten years since 2003,the speed of productivity change in China’s industrial enterprises slowed down.Major basic industries,including steel,coal and cement,have suffered severe losses.With overcapacity and other problems,their profits have plummeted.By the end of 2015,the producer price index of the above industries had been in a state of continuous negative growth for 40 months,and the supply-demand relationship in China was facing a structural imbalance that could not be ignored."To stabilize economic growth,we need to pay more attention to supply-side structural reform," the 2015 central economic conference said.The curtain has been raised on supply-side reform.Tax policy plays an irreplaceable role in the process of supply-side reform in China.A sound tax policy is of great significance to both the supply-side reform and the healthy development of the steel industry.On the one hand,perfect tax policies can effectively power the industrial policies of China’s steel industry and actively promote the supply-side reform process.On the other hand,a sound tax policy can also promote the spontaneous industrial concentration,improvement of product structure,reduction of energy pollution and other behaviors of the steel industry,and guide the healthy development direction of the steel industry,allowing steel enterprises to complete the survival of the fittest in the process of transformation and upgrading and under the role of the market.As one of the important basic industries in China,iron and steel industry plays a very important role in both tax and employment.However,in the process of steel industry transformation and upgrading,the role of tax policy needs to be further improved.This paper combined with the operation of iron and steel enterprises and the supply side direction of reform,in-depth analysis of the steel industry tax system and the current tax policy,as the main line of promoting the supply side of China’s steel industry reform tax policy,using "promote enterprise mergers and reorganization","relocation","encourage scientific research and innovation","encourage enterprises to export and foreign investment" four core Angle,analyze steel industry demand,as well as the limitations of the current tax policy,reference of foreign experience and combining with China’s national conditions put forward a series of promoting the healthy development of steel industry tax policy recommendations.