The Rise Of Service Industry: Eager To Convert Business Tax Into Value Added Tax

Compared to "

The speed of some specific tax reforms can be expected, for example.

In addition to a single tax, the urgency of institutional reform is equally noteworthy.

How is the burden of service industry higher than that of industry?

We should expand the scope of VAT collection, reduce business tax and other taxes accordingly, rationally adjust the scope of consumption tax and the structure of tax rates, and improve the tax policies conducive to the upgrading of industrial structure and the development of service industries.

This is clearly stated in the recommendation.

In August this year, the Standing Committee of the National People's Congress heard a report on the special research work around the compilation of the 12th Five-Year plan. The Standing Committee of the Standing Committee recommended that the value-added tax, business tax, resource tax and consumption tax system be improved and improved in the special research report on the reform of the financial system.

Resource tax reform has been launched in Xinjiang, which will help to increase local revenue.

The voice of value-added tax and business tax reform has been constantly in the industry and even in the enterprise level.

In fact, this is also an inevitable requirement for constructing a fiscal and taxation system conducive to changing the mode of economic development.

"Business tax reform is also an old problem. Service enterprises pay more business tax. In recent years, many service enterprises reflect higher tax burden than industrial enterprises with VAT, and begin to call business tax to value-added tax, which is also the development needs of modern service industry."

Wang Zhaocai, deputy director of the Financial Science Research Institute of the Ministry of finance, told the first financial daily.

Xu Lin, director of the finance and Finance Department of the national development and Reform Commission, also stressed that our country plans to implement a series of tax system reforms, including optimizing the tax system of value-added tax and business tax, and expanding the scope of value-added tax collection.

During the twelfth plenary session of the Fifth Plenary Session of Wen Jiabao, the statement on the formulation of the proposals for the five national economic and social development, stressed that we should promote the development of the service sector as the strategic focus of the upgrading and upgrading of the industrial structure, combine the development of service industry with the expansion of consumption of urban and rural residents, and combine closely with the expansion of employment, so as to bring the service industry to a new level.

But at present, the value-added tax in our country is only imposed on the industrial sector, and the business tax is levied on the service industry.

Because the industrial value-added tax has the mechanism of different links deduction, and the business tax does not deduct, the tax burden of the service industry is higher than that of the industry, which is not conducive to promoting the development of the service industry.

In fact, the financial structure of the central and local governments has affected the reform of the specific tax system to a certain extent.

In addition to the business tax paid by the Ministry of railways, the head office of banks, the insurance company and other enterprises, the other business tax is local tax.

Therefore, the business tax has a prominent position in the local fiscal revenue.

The VAT is a shared tax, 75% of the revenue goes to the central government, and 25% to the place.

"Therefore, in the reform of business tax, we must deal with the relationship between the central and local governments."

Wang Zhaocai said he thought that the business tax reform might start with the business tax paid by railway and state-owned banks, and then gradually expand the reform.

How to resolve the mismatch of local financial power and power

The proposal clearly stated that, on the basis of a reasonable definition of powers, we should further straighten out the fiscal allocation relationship among governments at all levels on the basis of matching financial and administrative powers.

We should increase the scale and proportion of general pfer payments, and strengthen the county level government's financial support for basic public services.

Gradually improve the local tax system, giving provincial governments appropriate tax administration authority.

These arrangements have guiding significance for solving the problems of current local government debts.

Wang Zhaocai believes that during the "12th Five-Year" period, the breakthrough point of fiscal system reform is to clarify the power of local governments, establish a financial operation mechanism that matches the powers of the authorities, and further improve the pfer payment system.

Liu Yuanchun, vice president of the school of economics, Renmin University of China, told reporters that the crux of many deep-rooted problems facing China now lies in the fiscal and taxation system. For example, the local land finance, the development model of local governments with GDP as the standard, and the risk of local financing platform, the root of these questions lies in the fact that local authority and financial power are not unified.

Liu Yuanchun believes that if the local financial power and power do not match, it will have a great impact on the future economic development.

The reform of the financial system for this purpose is no less profound than the tax system reform.

Recently, the National People's Congress Standing Committee special research group on the implementation of some major public investment projects in the tracking research report also pointed out that we should rationally divide the expenditure responsibilities between the central and local governments and local governments, and strive to solve the contradiction between the excessive responsibilities of the grass-roots governments and insufficient financial support.