Research On The Impact Of "VAT Reform" On Township Finance

Since October 26,2011,China has introduced the pilot program of replacing the business tax with a value-added tax,which was carried out nationwide on May 1,2016.This is a major revolution in the history of China’s tax system.The reform not only further standardizes China’s tax system,but also facilitates the development of the service industry,promotes the integration of various industries,and creates a good market environment.Township finance is the basis of national finance and the guarantee of the operation of grassroots political power.Adequate financial support plays a decisive role in implementing the policies on agriculture,rural areas and farmers and developing regional economy.With the comprehensive advancement of "replacing business tax with value-added tax",the finance of towns and villages stands in a new historical position,which brings new opportunities and challenges to the development of towns and villages.In order to give full play to the functions of township finance and safeguard the actual interests of the masses at the grassroots level,township governments must seize the opportunity brought by "replacing the business tax with a value-added tax" to further improve the economic situation of townships,rationally use financial funds and improve the level of financial management.Therefore,it is necessary for the future economic development and social stability of towns and villages to study the influence of "replacing business tax with value-added tax" on township finance.This paper,based on theoretical analysis and supplemented by empirical analysis,combines theory with practice,discusses the background,reasons and reform process of "replacing the business tax with a value-added tax",and analyzes the necessity and importance of "replacing the business tax with a value-added tax" in combination with the current financial system and tax system of towns and villages in China.In changling town,for example,according to the situation of rural finance,financial income,the tax sources construction to the township government,the respect such as economic development are analyzed,from the two sides discussed "camp" to the township financial impact,and accordingly put forward corresponding suggestion,in order to reduce its negative influence,make a smooth transition of the villages and towns to implement tax reform.Through this study,it can be concluded that the comprehensive implementation of "replacing the business tax with a value-added tax" plays a certain positive role in the finance of towns and villages.It is conducive to improving the tax system of towns and villages,eliminating double taxation,promoting the economic restructuring of towns and villages,promoting economic development,and providing guarantee for the implementation of the functions of the administrative departments of towns and villages.Of course,its implementation is also accompanied by many negative effects,such as the disappearance of main taxes in towns and villages,a certain decline in fiscal revenue in a short period of time,and tension in the distribution relationship with the central finance.To alleviate the negative influence,the villages and towns should be based on the reality of their own,scientific and comprehensive analysis of rural finance is affected by camp "change" and the reasons,to strengthen the construction of financial resources and improve the township fiscal and taxation systems,optimize the structure of the fiscal and taxation,completes the rural economic structure adjustment,take reasonable measures to cope with the "camp" to the negative effects of rural finance.Through the research in this paper,towns and villages can not only better cooperate with the national fiscal and taxation system reform and promote the smooth progress of "replacing business tax with value-added tax" reform,but also help towns and villages to adapt to "replacing business tax with value-added tax" as soon as possible,and gradually build a reasonable,standardized,scientific and practical financial system to ensure the normal operation of town finance.