Research On The Impact Of Tax Reduction Policy On The Upgrading Of China’s Industrial Structure

In the context of China’s rapid economic growth aimed at achieving high-quality development,industrial structure upgrading has become one of the biggest challenges for China’s development.Industrial structure upgrading,as an inevitable requirement for China’s economic development at a reduced rate,is also one of the key connotations of China’s macroeconomic policy of "adjusting structure and stabilizing growth".Promoting industrial structure upgrading helps improve the overall quality of economic development and prompt the transformation of China’s real industries to high-tech industries.As an important tool for macroeconomic adjustment and control,the taxation system has played an important role in regulating industrial structure.Taking the Central Economic Work Conference in 2008 as the first time to put forward the concept of "structural tax reduction",China has introduced tax reduction measures such as "camp reform",VAT rate simplification,individual tax policy reform,tax incentives for small and micro enterprises and high-tech industries.Tax reduction policy is an important tool to regulate economic development and plays an important role in optimizing the tax system and improving the business environment.Tax reduction policies can be specifically divided into two types: one is structural tax reduction and the other is universal tax reduction.In the 2018 National Financial Work Conference,which proposed inclusive tax cuts,it was pointed out that the tax reduction system should be continuously improved,personal income tax reform should be further promoted,and tax reform should be promoted to stabilize social development and help the development of real industries.A reasonable and orderly tax reduction policy can help to adjust and upgrade China’s industrial structure,so as to solve the complex problems encountered in China’s economic development and guarantee the good and orderly development of China’s economy.More,linking China’s industrial structure with the development of tax reduction policy,comprehensively analyzing the effect of tax reduction policy implementation,further studying the role of tax reduction policy in promoting the upgrading of China’s industrial structure,and maximizing the positive impact of tax reduction policy,can have guiding significance for the specific practice of industrial structure at the present stage.This thesis starts from organizing the concepts related to tax reduction policies,linking the relevant tax reduction policies with China’s industrial structure,and visually analyzing the tax reduction policies that promote the upgrading of China’s industrial structure,introducing the intermediary role of science and technology innovation and analyzing how to influence the upgrading of industrial structure through science and technology innovation.This thesis analyzes the tax reduction policy empirically,elaborates on the current problems of tax reduction policy,and lists the relevant suggestions and countermeasures.The first chapter gives a preliminary introduction to the background and significance of the study,compiles and compares the results of domestic and foreign studies on tax reduction policy and industrial structure upgrading,and further elaborates the main contents of the study,followed by the innovation points and shortcomings of the thesis.Chapter 2 defines the definition of tax reduction and industrial structure,and further analyzes how tax reduction policy affects industrial structure.Chapter 3 presents a preliminary statistical analysis of the current situation of tax reduction policies that promote the modernization of China’s industrial structure,taking the development of three industrial sectors in China as an example,and a breakdown of the actual implementation of tax reduction policies in China.Chapter 4 is an empirical analysis of tax reduction policies,science and technology innovation and industrial structure upgrading in China,based on panel data of 30 Chinese provinces from 2009 to 2020,using dynamic econometric panel models,generalized least squares(GLS)estimation and tests of mediating effects.The impact of STI on industrial structure upgrading is examined.The empirical results show that there is a significant positive correlation between tax reduction policies and industrial structure upgrading,indicating that tax reduction contributes to the achievement of industrial structure upgrading.For the secondary and tertiary industries,in general,the tax reduction policy reduces the proportion of the secondary industry and increases the proportion of the tertiary industry,which leads to the gradual transformation of the industrial model from "two,three,one" to "three,two,one".Science and technology innovation plays an important mediating role in the impact of tax reduction measures on industrial structure upgrading,with a mediating effect level of 13.76%,which has some room for improvement.Based on the above analysis,Chapter 5 summarizes the main findings of this thesis and,based on the results of the empirical study,puts forward policy recommendations that can further promote scientific and technological innovation and industrial upgrading in China,including strengthening the guiding role of innovative tax reduction policies,fully utilizing and guiding the leverage and leading role of the government,and reasonably allocating resources.