Research On The Tax-free Policy Of China's Military Value-added Tax

In certain historical environment,the current policy of value-added tax exemption of military products in China played a certain role in supporting military industry and enhancing the level of national defense modernization.However,with the deepening of marketing reforms,the deficiencies of tax exemption policy,in fairness,rationality,and operability,gradually showed up.It is necessary to research and analyze the value-added tax principle,tax fairness and public management efficiency in order to provide guidance for improving and perfecting the value-added tax exemption of military.The article based on the cases of AVIC SERVICE & SUPPORT(TIANJIN)CO.,LTD and TOPWINGS AERO-TECH(BEIJING)CO.,LTD,starting from the value-added tax principle and combining the features of military and non-military industries,analyzes the policy of value-added tax exemption of military products and research status,using the method of combining theory analysis and comparative analysis.The article also conducts in-depth analysis in multiple factors affecting the fairness,efficiency,and brings up specific measures and suggestions.The article states that main problems include the imperfection of permission system and relative tax policy system;interruption of value-added tax input deduction caused by tax exemption;currant military products pricing system restricting incentive of tax exemption;low efficiency of public management service caused by complicated approval process of tax exemption.The author brings up suggestions such as strengthening the coordination of tax exemption policy and industry permission,refining the policy of military products value-added tax exemption and input deduction system;implementing market-oriented revolution of military products price,enhancing tax exemption public service effectiveness,etc.It is of great significance to improve the theory of value-added tax,promote the high-quality development of national defense science and technology industry and military civilian integration strategy to improve the malpractice of policy and maintain the fair and efficient implementation of value-added tax policy under the condition of market economy.