A Study Of Tax Capacity Of Turn Over Tax And Its' Regional Difference In China

Since the reform of tax distribution system in 1994,the debts of local governments in China are increasing year by year which has aroused attention from all walks of life.To solve this difficult problem,it is urgent to establish a perfect financial transfer payment system.The best reference standard for intergovernmental transfer payment is the size of the gap in fiscal revenue and expenditure,but the calculation of this gap can not be separated from the estimation of financial capacity.The calculation of financial capacity is primarily to estimate tax capacity,while in China,the proportion of tax revenue of turn over tax is higher.So the assessment of tax capacity of it can reflect the financial capacity of local governments to some extent,and it can also provide some reference value for intergovernmental transfer payment.Based on the statistical data of China between 2006 and 2015,statistical calculations of tax capacity and tax effort of Turn Over Tax of the whole China,different regions and sectors are done by Representative Tax System.The statistical results show that:(1)Whether it is Value-Added Tax,Sales Tax and Turn Over Tax,the overall tax capacity shows the highest in the East,middle in the second and lowest in the West.While tax effort is highest in the East,West in the second,and lowest in the middle.(2)The Value-Added Tax,Sales Tax and Turn Over Tax,the overall tax capacity and tax effort has significant differences in the East,middle and West.(3)After the Change from Business Tax to Value-Added Tax in 2012,the overall tax capacity of Value-Added Tax and Turn Over Tax in all regions of China increased to some degree,while tax capacity of Sales Tax declined.(4)After the Change in 2012,the tax effort of Value Added Tax increased significantly in the east,while the middle and western regions decreased.Tax effort of Sales Tax overall rise first and then decline.Tax effort of Turn Over Tax decline in all regions.(5)The degree of tax capacity of Value Added Tax of different industries is highest in the east,the middle is the second,and the west is the lowest.And the tax capacity exists significant differences between different industries.(6)The Change in 2012 exists the effect of increasing tax capacity of Value Added Tax and Turn Over Tax,and decreasing tax capacity of Sales Tax.While these influences exists some uncertainty,and the uncertainty is highest of Value Added Tax,the middle of Turn Over Tax and the lowest of Sales Tax.