Study On The Impact And The Countermeasures Of Replacing Business Tax With Value-added Tax On Local Fiscal Revenue

On May 1,2016,the reform of replacing business tax with value-added tax(Referred to as"Business tax reform VAT")was fully implemented in China.This is the largest tax cut since the reform start and make sure all industries can have a tax cut.It is beneficial for enterprises to reduce tax pressure and eliminate double taxation.But since tax revenue is the important component of local finance revenue,so the effect of tax cuts will also cause a local fiscal revenue dilemma.Therefore,we should do a calculating on the tax cut caused by "business tax reform VAT",and take measures to deal with the impact of the "business tax reform VAT"on fiscal revenue.It would have a great significance to ensure the stable growth of local fiscal revenue in the future.Nanning S district is the jurisdiction of Nanning in Guangxi province.It is a county units which economic and social development is generally good and the total fiscal revenue ranks among the top three in the city,but financial resources remain weak.Because it is income growth is low and per capita spending is slow too.Especially after the "business tax reform VAT" start,the contradiction between government revenue and expenditure intensified.In the case that tax revenue can only achieve a slight increase or even negative growth,we also need to ensure that rigid expenditures,policy expenditures and statutory expenditures increase year by year.This paper takes S district of Nanning city as an example,explain the impact of"business tax reform VAT" on local fiscal revenue.Firstly,explain the relevant concepts and basic theories of the research.Secondly,the short-term impact of "business tax reform VAT"on fiscal revenue is analyzed from the aspects of tax reduction in each pilot industry,indirect revenue reduction caused by the adjustment of tax division system,and the change of fiscal revenue before and after the "business tax reform VAT",and use the model calculates the long-term impact of "business tax reform VAT" on fiscal revenue.We points out that there are still some problems in the process of "business tax reform VAT",such as the division of governmental power and financial power,the aggravation of local revenue and expenditure contradiction,the insufficient resource allocation ability of local governments,the imbalance of public services,the taxation of local traditional industries and the lack of new tax sources,and analyzed the causes of these problems.Finally,standing in the perspective of public:management and using some relevant theories of management and economics to giving suggestions on increasing the local finance income from the reform of the division of powers between the government,the rational allocation of all levels of government financing,promote the reasonable allocation of resources,foster a new growth point of taxation,improve the level of all levels of government guarantee,gradually realize the equalization of public service,strengthen the cooperation of financial and tax departments aspects.We hoped that this paper can provide useful reference for local financial departments to cope with the severe revenue situation,organize local fiscal budgets and ensure the sustainable,stable and healthy development of local fiscal revenue.