Tax Administration: The Value Added Tax Reform Will Be Extended To The Whole Country.

Xiao Jie, director general of the State Administration of Taxation, disclosed at the first South of the Five Ridges forum yesterday that it is estimated that if the value-added tax on business tax is changed in the whole country, the net tax reduction in the whole country will be more than one hundred billion.

　　 VAT transformation three years tax reduction 500 billion

Xiao Jie said that after the business tax was changed to VAT, it led GDP growth by about 0.5%, and the value added of the third industry increased by about 0.3%, which led to 1% growth in household consumption, an 0.7% increase in export growth, and a direct increase of about 700 thousand new jobs.

　　 Value added tax The core feature is the deduction mechanism, which has the advantage of effectively avoiding heavy taxation. Xiao Jie revealed yesterday that according to the statistics of tax authorities, during the three years from 2009 to 2011, due to the implementation of the value-added tax reform, the tax revenue has been reduced by about 500000000000 in the past three years, and the tax burden of enterprises has been significantly reduced.

However, there is still a problem of repeated levying of business tax and value added tax. In January 1st of this year, the value-added tax on business tax was first tested in Shanghai.

The pilot industry includes transportation and some modern service industries. In the pilot scheme, based on the current 17% and 13% two VAT rates, 11% and 6% two tax rates were set up, 11% for the transportation industry, 6% for the modern service industry, such as R & D, technical services, cultural creativity, logistics assistance and certification consulting. Analysis shows that the reform is a tax reduction measure, which will lighten corporate tax burden as a whole.

The tax burden of some pilot enterprises has increased.

Xiao Jie said yesterday that as of now, 126 thousand taxpayers in Shanghai have entered the scope of reform. Judging from the current pilot results, the reform has reduced the burden of most taxpayers. The tax rate for small-scale taxpayers has dropped from 5% to 3%, and the tax burden has dropped by more than 40%. Among the general taxpayers, the tax burden of R & D, rental services, 75% of information technology and financial services, and 80% of the cultural and creative services taxpayers have been reduced to varying degrees. Including some of the original value-added tax taxpayers, due to the expansion of the scope of deduction, the tax burden is generally reduced.

　　 Xiao Jie At the same time, the tax burden of some taxpayers such as transportation enterprises has increased during the pilot reform.

Prior to that, Zheng Jianxin, deputy director of the Ministry of Finance and taxation, said that from the institutional level, as the pilot was carried out in some industries in some parts of the country, some of the goods and services purchased by the pilot enterprises could not be deducted. Therefore, the individual enterprises may lose their tax burden in the early stage of the trial, resulting in an increase in the tax burden of enterprises in the short term. From the enterprise level, the tax burden of individual enterprises may also increase in the early stage of reform because of the cost structure, the development period and the different management strategies.

　　 Pilot areas and industries continue to expand.

Xiao Jie said yesterday that with the continuation of the pilot, the policy will be further improved and expanded on this basis. Pilot reform Regional and industry scopes.

Previously, the State Council proposed to steadily expand the pilot area and scope of business tax to VAT. The relevant officials of the Ministry of finance also said on many occasions that they would sum up the experience of the pilot project and gradually expand the scope of the trial so as to gradually promote the reform to the national level during the "12th Five-Year" period.

At the end of February this year, Beijing's land tax official said that Beijing had submitted an application to the Ministry of Finance and hoped that the business tax would be changed to a value-added tax in July 1st.