The Impact Of Digital Financial Inclusion On Local Taxatio

In September 2016,the concept of digital Inclusive Finance was officially put forward at the G20 summit.The new model of digital technology driven inclusive finance development has become the key financial development direction of all countries,so the development of digital Inclusive Finance has entered the fast lane.In recent years,digital Inclusive Finance has played an important role in tax growth in terms of industrial structure upgrading,innovation level and consumption upgrading through its characteristics and functions,which is conducive to easing the downward pressure on local taxes caused by the COVID-19 in 2020.Therefore,the study of the impact of digital Inclusive Finance on taxation has important theoretical and practical significance.In this context,this paper studies through theoretical analysis and empirical analysis.In the theoretical analysis,based on the perspective of the intermediary effect of industrial structure upgrading,innovation level and consumption upgrading,this paper analyzes the impact mechanism of digital Inclusive Finance on tax growth.Combined with the above analysis,this paper puts forward the basic hypothesis of this paper: H1: the development of inclusive digital finance can promote the increase of local tax.H1a: the promotion degree of digital Inclusive Finance to tax growth will vary due to regional heterogeneity and secondary indicator heterogeneity.H2: Digital Inclusive Finance indirectly promotes tax growth by improving the level of innovation.H3: Digital Inclusive Finance indirectly promotes tax growth by improving the level of innovation.H4: Digital Inclusive Finance indirectly promotes tax growth by improving residents’ consumption level and upgrading.In the empirical analysis,firstly,taking prefecture level cities as the research object,this paper tests the intermediary effect of industrial structure upgrading,innovation level and consumption upgrading;Secondly,285 prefecture level cities in China are divided into three parts: East,middle and west to explore the regional heterogeneity of digital Inclusive Finance on tax growth;Finally,the digital inclusive finance index is divided into three levels: digital level,use depth and coverage,and further analyze the impact of the digital Inclusive Finance secondary index on local tax growth.The empirical results show that digital inclusive finance plays a significant role in promoting local tax growth.Through the intermediary effect test,it is found that the upgrading of industrial structure plays the largest role in promoting tax growth,and the upgrading of consumption plays the smallest role in promoting tax growth;The role of digital Inclusive Finance in promoting tax growth in the central and western regions is greater than that in the eastern region;The depth of the use of digital Inclusive Finance has the greatest effect on tax,while the breadth of coverage has the least effect on tax.Based on the analysis results,the following suggestions are put forward: first,continue to strengthen the government’s strong policy support for the development of digital Inclusive Finance,promote the infrastructure construction of digital Inclusive Finance,and pay attention to the cultivation of talents;Second,broaden the role path of digital Inclusive Finance on local tax growth and promote the sustained and high-quality growth of local tax;Third,encourage financial institutions to innovate financial products,improve the multi-level digital inclusive financial service system,and tap the depth of the use of digital Inclusive Finance.