Study On VAT Degeneracy In China Based On Industrial Development

Since 1994,China has experienced several reforms of VAT system,and the structure of VAT rate has also changed.Since the value added tax was expanded in May 1,2016,as a policy transition,the value-added tax rate has increased from two to four,that is,"17%,13%,11%,6%".In July 2017,the tax rate of 13% was abolished,and the VAT rate was reduced from four to 17%(17%,11% and 6%).From May 1,2018 onwards,the tax rate will be further lowered,and the tax structure will be adjusted from "17%,11%,6%" to "16%,10%,6%".Although the multilevel tax rate has certain inevitability,but with the passage of time,such as distorting tax neutrality,affecting economic efficiency and industrial development,and so on,the tax rate of VAT is imperative.This paper studies VAT tax rate structure from the perspective of industrial development,estimates VAT tax rate by input-output table method,analyzes the industrial development effect of different schemes,and puts forward the best tax rate combination under the premise of ensuring the stability of national fiscal revenue.This paper is divided into five parts: the first part,the research background and significance of the research,combing the related research of the industry development and VAT degeneracy,and clarifying the research ideas and methods of this study.In the second part,it summarizes the related theories of industrial development and VAT tax rate structure,analyzes the influence mechanism of VAT on industry development and the significance of reducing the tax rate in the perspective of industrial development.The third part makes an in-depth analysis of the drawbacks of the structure of VAT tax rate in China,and draws lessons from the experience of the developed countries on VAT degeneracy and put forward further degeneracy and VAT tax rate.The fourth part,from the perspective of industrial development,the VAT tax rate and the scheme are discussed.According to the model proposed by Pelleehio,the tax model is built.According to the 2012 China input-output table,the 18 tax rate combination schemes are calculated and compared to each industry department in order to ensure the stability of the country's financial revenue.Next,we calculate thethree candidate schemes and their industrial development effects,and propose the optimal tax rate degeneracy scheme.The fifth part puts forward relevant countermeasures for further reduction of VAT rate.