Dissertation
Dissertation > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Financial income and expenditure > Tax

Study on the Efficiency of the Value-Added Tax

Author YanCaiMing
Tutor HuZuoJian
School Shanghai University of Finance and Economics
Course Finance
Keywords VAT invoice Small-scale taxpayers The export tax rebate Loss of efficiency VAT system Tax authorities Tax rebate rate Double taxation Management efficiency Tax Efficiency
CLC F812.42
Type PhD thesis
Year 2006
Downloads 1837
Quotes 9
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This dissertation studies the efficiency of the Chinese value-added tax (VAT) system. Analyzing from tax efficiency to VAT principles, the author discloses the advantages and disadvantages of the VAT system per se in terms of its efficiency and that of different VAT management models. Through theoretical and empirical study of the economical, managerial and social efficiency of VAT in China, its macroeconomic and microeconomic effect of the choices of tax base types and its levying and management model, the policy effect of VAT refund for export and the comparative analysis of the effect of VAT with others. The author intends to find out the nature and regularities of VAT by analyzing the core characteristics of a single tax type, and further work out a VAT reform model what is pursuant to China’s economic development and managerial level.I think, VAT’s types, tax base, grounding and the decision of tax rate shall be determined with full consideration of tax efficiency to enable the functioning of VAT’s financial principles. The choice of levying and management model shall fully respect the principle of“simplicity, preciseness, convenience, low cost”, which shall be in close consistence with the vested nature of VAT—“efficiency, neutrality, and tax on the value added”. In terms of economic and managerial efficiency, the levying of VAT shall stick to the principle of taxation on actual transaction; and the imposition of VAT should not be based only on the existence of invoice. It is also necessary to admit that the tax refund is merely a means of avoiding double taxation of products for exporting in an open economy. So,The decision of tax refund rate should accord to the principle of consistency of levying and refunding. Goods to be exported but not encouraged may be applied to levy export duty .Any inconsistency of taxing and refunding will surely lead to behavior distortion of exporting agents and to induced policy transformation of local government, which in turn will result in efficiency loss of VAT. As for the social efficiency of VAT, the author thinks, mechanism of exemption or other preference policy of VAT to the products from the recycling of used material. are necessary and unavoidable。In order to reform and perfect the current VAT system in China, the author renders the proposal of“one-step transition, step-by-step extension, and reduction of tax burdens optimally”.That is,In the choice of VAT transition models and routes, we shall stick to the rule of one-step transition to consumption-based VAT nationally , otherwise, the test in any place and any industry will turn out only to be the problem of who enjoys the preferential treatment firstly, it will lead to the transferring of investment between regions and industries and result in the behavior distortion of investors and efficiency loss, there are not any universal significance and modeling effect. We should activate the step-by-step extension strategy to extend the base

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