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On the Development Strategy of China’s Value-Added Tax (VAT) Reform

Journal of Chinese Tax and Policy

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Title On the Development Strategy of China’s Value-Added Tax (VAT) Reform
 
Creator JIN, DONGSHENG
JIN, WEIFU
 
Description Along with the official replacing of Business Tax with value-added Tax (VAT) forsome business sectors in Shanghai’s pilot zone, the issue of VAT reform hasattracted widespread attention from the public. This paper will first outline thebasic concept of VAT, and then briefly elaborate on the advantages anddisadvantages of VAT, the emergence and development of VAT, the introductionof VAT to China and the course of VAT reform in China. The proposedimplementation of the VAT pilot program in Shanghai is only a fundamentalcomponent of optimising the VAT system. In order to simplify and make the VATsystem efficient, China must continue with its VAT reform in accordance with thestandards of modern VAT.On 26 October 2011, a State Council executive meeting decided that from 1 Jan2012 onwards, the VAT system reform will be deepened in pilot zones for someregions and industries, thus gradually changing from imposing business tax oncertain industries into levying VAT.Expanding VAT reform is a highlight of the 12th Five-Year plan tax reform. Afterthe trial, the VAT reform may extend from certain regions and industries to theentire country and more business sectors respectively, thus delivering benefits torelated industries and enterprises. This reform is beneficial in lowering the price ofgoods and services, boosting consumption, improving welfare and accelerating thetransformation of China’s economic development model.
 
Publisher Journal of Chinese Tax and Policy
 
Contributor —
 
Date 2018-05-22
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Identifier https://openjournals.library.sydney.edu.au/index.php/JCTP/article/view/12748
 
Source Journal of Chinese Tax and Policy; Vol 3, No 3 (2013): Chinese Tax and Policy s
1839-065X
2205-2550
 
Language EN
 
Rights Copyright (c) 2018 DONGSHENG JIN, WEIFU JIN