The Pilot Scheme For VAT Reform Is Expected To Expand Around &Nbsp, And Municipalities And Provincial Capital Applications Are Encouraged.

Following Beijing,

Beijing's "business tax reform VAT pilot" (hereinafter referred to as "camp changed to increase") pilot approved by the Ministry of finance, now appears to be just the starting point of this grand narrative tax reform experiment.

After the approval of the Ministry of Finance and the approval of the Ministry of Finance in two municipalities directly under the central government of Shanghai and Beijing, the central government intends to speed up the expansion of the tax reform.

At present, the scope and path of further expansion of the pilot area have been basically confirmed, that is, municipalities with conditional conditions and provincial capitals will be encouraged to apply for a pilot camp.

At present, in addition to Shanghai and Beijing, other cities have applied for the camp to increase or increase.

It is understood that, in order to ensure the smooth progress of the work, the Ministry of finance has set up a pilot office of the camp to specialize in the coordination of related businesses.

While the Beijing municipal government has changed its business to investigate many possible industries, the draft of the new round of camp to increase pilot cities is about to begin.

Speed up pilot expansion

Before and after the Spring Festival of the dragon year, Shanghai and Beijing

In March 1st, on the eve of the national two sessions, the authorities close to the Ministry of Finance and the State Administration of Taxation disclosed to our reporter that after the approval and initiation of the pilot work of the camp changed to increase in Shanghai, the central government intends to encourage other "municipalities with conditions" and cities and towns to apply for a pilot camp.

This reporter has learned that at present, the work is already in progress. Besides two cities in Shanghai and Beijing, other cities have applied to the central government for a pilot project. But as of press release, no relevant reply has yet been received.

Business tax is levied on territorial taxes, with turnover as the basis.

In February 24th, Zheng Jianxin, deputy director of the Ministry of Finance and taxation, said in an interview with the media that at present, Beijing and other regions reported applications for participation in the pilot projects. Relevant departments will closely follow the pilot operation in Shanghai, sum up the experience of the pilot projects, and gradually expand the scope of the trial, and strive to gradually promote the reform to the national level during the "12th Five-Year" period.

The reporter has learned that in order to ensure the smooth expansion of the scope of the pilot project and the smooth operation of the camp, the central government has set up an office of the camp in the Ministry of finance to coordinate the related work.

At present, this organization has been docking with the functional departments of Shanghai and Beijing to reform pilot projects.

Game of income distribution

As business tax and value added tax are separately collected from territorial taxes and national taxes, and are separately incorporated into local and central finance, it is therefore apparent to the outside world that the interest game between the central government and local governments on this issue will be a major problem faced by the promotion of the camp in the whole country.

Gao Peiyong, director of the Institute of Finance and Commerce of the Academy of Social Sciences, told reporters that whether Beijing or Shanghai is a short-term pilot, it is unlikely that the central and local fiscal management structure of VAT will be adjusted in the short term.

At present, the value-added tax is levied by the territorial tax system and enters the central financial account.

According to the current mode of splitting accounts, the central and local governments will be divided into 75% parts according to the ratio of 25% to 1.

Then, the central government will return the 75% value-added tax revenue from the central government to local finance in a certain period of time.

The reporter has learned that the distribution of tax revenue in the process of Shanghai business pformation has also been discussed.

The final method is to change the business tax to the value added tax after the business is changed to increase, which is collected by the central government instead of the local government.

Zhang Bin, director of the Tax Research Office of the Academy of Social Sciences, pointed out that a very important reason why Shanghai became the first pilot area is that the Shanghai land tax is unified management. The value added tax should be collected by the state tax, and the business tax is levied by the local tax. However, the Shanghai land tax is not separated.

Gao Peiyong told reporters that in the whole tax revenue of the United States, the proportion of turnover tax from indirect tax is less than 20%, and the proportion of income tax from direct tax is more than 70%.

At present, in China, the proportion of turnover tax derived from indirect tax is more than 70%, while the rest of the income tax derived from direct taxation is less than 30%.

Different from Beijing and Shanghai

In recent years, other municipalities and provincial capitals have applied for the camp to replace the pilot scheme. At the same time, the pilot industry scope has been expanded.

Reporters learned that the Shanghai camp changed to increase pilot, in addition to two areas in the pilot 6 industries, the recent progress has been made, in addition to further expand the scope of the pilot area, some new industries will also be included in the pilot area.

The value added tax of financial and insurance industry, which is being calculated by the simple tax law, is being re examined by the relevant departments.

At the same time, Beijing has also launched the investigation and research work of the related industries.

At present, the Beijing Local Taxation Bureau is conducting research on more than 5.4 million business tax payers in the city.

Liu Huan, Dean of the school of Finance and taxation of Central University of Finance and Economics, who served as a member of the Beijing Municipal Committee of the CPPCC, once submitted a proposal. He suggested that the Beijing municipal government apply for the pilot work of the camp reform and increase. At the same time, he also made suggestions. He hoped that Beijing would highlight the "special features" of Beijing's economic structure in the process of applying for the pformation of the business.

The so-called feature is that the pport industry in Beijing is not as developed as Shanghai. Therefore, combined with the characteristics of Beijing's economic structure, the pilot work of increasing the camp should be placed in the general consulting industry in the construction industry and modern service industry.

Liu Shangxi, deputy director of the Ministry of Finance and Taxation Research Institute, has also publicly stated that another major difference between Beijing and Shanghai is that Shanghai's national tax and land tax have not been separated, and Beijing has completed the separation of the national tax and land tax very early.

Liu Huan said that the camp can only be evaluated qualitatively, but it is difficult to quantify at present.

Reform will definitely have a good impact on the industry, but how much tax reduction will be specific depends on the specific circumstances that will be implemented in the future. At present, the Ministry of finance has not made specific estimates.