Comment on the change of business Tax into Value Added Tax（VAT） in China pref. Wangping Beijing Union University Wangping@buu.edu.cn +8613521118813 应用文理学院 College of Applied Arts & Science
中国增值税发展、改革的历史 1994-2009-2012-2016（5.1） The course of development and reform of China's VAT
1.正面影响 1 The positive impact 1.1促进了中国税收制度完善 1.1 to promote the improvement of China's tax system 1.2促进了中国经济改革 1.2 to promote China's economic reform 1.3促进了中国企业经济活动更加规范和高效 1.3 to promote the economic activities of Chinese enterprises more standardized and efficient
2.面临的难题 2 The problems 2.1对中央和地方政府财力配置的影响 2.1 the influence of the financial allocation of the central and local governments Local government‘s main taxes：business tax, income tax, real estate tax, … The Central Government’s main taxes: Consumption tax, tariff, vat by customs duty on imported,… Share ratio between central government and local government:75%:25% - 50%:50%
2.2改革过渡期增值税税率过于复杂 2.2 the transition period of the reform of value-added tax rate is too complex General taxpayer Small scale taxpayer Existing tax rates 17%,13% 3% Tax rates during the reform period 11%,6%,5% Total tax rate 17,13%,11%,6%,5% All tax rates 17,13%,11%,6%,5%,3%
2.3 Some industry's tax burden will be increased 2.3部分行业的税负会加重 2.3 Some industry's tax burden will be increased construction industry rate of business tax 3% - rate of vat 11% real estate industry rate of business tax 5%-rate of vat 11%
3. suggestions and Prospects 3.建议和改革试点的展望 3. suggestions and Prospects 3.1进一步调整、完善中央和地方政府财力配置方案 3.1 Adjust and improve the central and local government financial resources allocation scheme. 3.2简并、整合增值税税率 3.2 Degenerate VAT rate. 3.3对部分特殊行业实行过渡政策，逐步实现普遍性增值税制度 3.3 Implement the transition policy in some special industries, and gradually realize the general value-added tax system.