Research On The Simplification Of VAT Rate In China

Since the replacing of business tax with VAT in China,the drawbacks of the excessive VAT tax scale have been increasingly emerging.It will not only distort the tax neutrality of VAT,affect the collocation of resources,lead to the unfair tax burden among industries,but also increase the cost of tax collection and management and tax compliance.At present,domestic and foreign scholars have almost reached a consensus on the simplification of the VAT tax scale,and the difference mainly lies in the simplification of multi-level tax rate or the determination of the tax rate.Based on the downward trend of VAT rate and the trend of industrial development and the consideration of avoiding drastic and comprehensive fluctuation of tax burden,this paper designs three kinds of VAT rate simplification schemes on the basis of the current multi-level differential tax rate.This paper uses the input-output table method to simulate and calculate the impact of different schemes on the tax burden of various industries,according to 2012 input-output table of China,2013 China tax yearbook and 2013 statistical yearbook data,referring to the research results of Pelleehio(1996),the tax base calculation model was established,and Then compare the estimated results with the actual values,and comprehensively analyze the fiscal revenue effect,enterprise division effect and industrial structure optimization effect of each scheme.Therefore,the better VAT tax rate reduction plan is determined as "standard tax rate of 16%+ low tax rate of 6%",while the zero tax rate remains unchanged.