A Study About The Effect Of Tax Reduction On Pollution Control

At present,the world economy is in a period of deep adjustment.Under the influence of major changes,the country’s economic development is also in a critical period.Coupled with the impact of the new crown pneumonia epidemic in 2020,the economic development situation has become more complex,and the risks and uncertainties of social construction and economic development have increased.To promote macro-and micro-economic development,more emphasis has been placed on reducing taxes and fees,and helping enterprises to develop through tax reduction has become an integral part of the country’s active fiscal policy.Data from the 2021 National Taxation Work Conference shows that since 2016,new tax cuts and fee reductions nationwide have accumulated more than 8.6 trillion yuan,of which 2021 is expected to exceed 1.1 trillion yuan.It can be seen that tax reduction and fee clearance measures have become an important starting point to help enterprises restore production and economic control.Tax cuts,rather than fee cuts,are more beneficial to people’s livelihood,the development of enterprises,economic transformation and technological innovation.Meanwhile,the environmental problems accumulated by relying on the extensive development model of "high input,high output,and low efficiency" in the past are not optimistic and restrict sustainable development.As one of the three major battles to build a moderately prosperous society in an all-around way,pollution prevention and control will be the keyword for building a "beautiful China" green ecological civilization.How to achieve high-level protection of the ecological environment while achieving high-quality economic development will become a major and difficult task for the country for a long time in the future.This article focuses on the positive effects of China’s large-scale tax cuts on environmental protection and pollution control.Specifically,this paper takes the transformation of value-added tax in Northeast China as a quasi-natural experimental shock of tax reduction incentives.From a microscopic perspective,the DDD differential model based on the three dimensions of region,industry,and time is constructed to verify the effect of tax reduction policies to encourage enterprises to control pollution and to analyze and test the impact mechanism from multiple perspectives.Through the research of this paper,it can provide new ideas for improving the enthusiasm of enterprises to actively control pollution and solving the problem of low efficiency of environmental governance,and also provide beneficial reference for realizing the win-win development of economy and environment.As far as the research framework is concerned,this paper first analyzes the theoretical basis of tax reduction to encourage enterprises to reduce emissions and control pollution,discusses its internal mechanism,and then discusses specific paths by category;Secondly,from the perspective of tax reform,the paper divides the implementation of the tax reduction policy into four stages,and sorts out the important nodes of each stage in detail,and compares and analyzes the role of tax reduction implementation from macro and micro perspectives;In terms of tax policy related to environmental governance,this paper expounds from two aspects: tax collection and tax preference;Thirdly,specific to the analysis of the theme of this article,first of all,we will describe and analyze the transformation and reform of value-added tax in Northeast China.Based on sorting out the expansion timeline,we will analyze the total effect according to indicators such as GDP and industrial added value.Then,based on the VAT deduction situation and changes in corporate tax burden,the effect of tax reduction is visually displayed;Furthermore,it will expound on how the VAT transformation can reduce the tax burden of enterprises,and then preliminarily demonstrate the conclusion that the implementation of VAT transformation in this region may be an obvious tax reduction process for enterprises.Finally,based on the previous theoretical analysis and policy review,this paper selects the value-added tax transformation and reform in Northeast China in 2004 as an exogenous policy impact node.By constructing a triple difference model,an empirical analysis is carried out based on the pollution discharge data of industrial enterprises and the financial matching data of industrial enterprises from 2001 to 2006.The empirical results show that:(1)The transformation of value-added tax has enabled enterprises in the pilot industries in Northeast China to significantly reduce the discharge of pollutants represented by chemical oxygen demand and industrial wastewater discharge,which indicates that tax reduction has motivated enterprises to control pollution.(2)After the implementation of the tax reduction policy,enterprises in the pilot industries of value-added tax transformation will choose to adopt more intensive and efficient production process improvements while choosing to increase terminal treatment facilities such as wastewater treatment facilities,rather than Market-oriented product innovation,which to a certain extent shows that the transformation and reform of value-added tax have significantly promoted the R&D and application of green technology innovation by enterprises;(3)At the level of heterogeneity analysis,tax reduction has a greater incentive effect on state-owned enterprises,heavy polluting industries,small and micro enterprises than non-state-owned enterprises,non-polluting industries and large and medium-sized enterprises.Based on the above analysis,the research of this paper shows that the tax reduction policy can achieve a "win-win" of economic development and environmental improvement,but the constraints and effects of different enterprises are also different.To better play the role of tax reduction to encourage enterprises to control pollution,this paper gives specific suggestions as follows:(1)Strengthen the top-level design of the tax system.While strengthening environmental control,attention should also be paid to the "combination of soft and hard",and the use of tax policies to guide enterprises from passive pollution control to active pollution control;(2)To improve the level of precise policy implementation,the state should consider the different governance motives of different ownership,different industries and even different scales of enterprises when promoting policies,and research and formulate differentiated tax reduction policies to maximize tax reduction and encourage enterprises to reduce emissions.the role of pollution control;(3)Pay attention to the staged differences in corporate emission reductions.After the implementation of the tax reduction policy,a complete system of supporting facilities can ensure that the effect of tax reduction and pollution control can be multiplied with half the effort;(4)To further improve supervision and management,we will not only improve the standardization of tax collection and administration,and the implementation of preferential tax policies,but also to strengthen the information disclosure of corporate environmental governance behaviors,and to enhance their awareness of fulfilling environmental protection responsibilities.