Abstract
The effect of Value-added Tax (VAT) preferential tax policies on epidemic prevention and control is a hot topic of academic attention. Fiscal and taxation policies are conducive to economic recovery and social development. One of the functions of tax revenue is to regulate economic operation, which plays an important role in stabilizing economic operation during the COVID-19 period. To leverage of tax revenue, the government can reduce the economic pressure of social members during the epidemic period through tax relief, and guide enterprises to develop in better fields. VAT is still the largest source of tax revenue in our country, and its role in regulating economic operation is also very important. VAT has a positive impact on economic operation, can increase the development of the public health market, and contribute to epidemic prevention and control and post-epidemic economic recovery. This paper studied the VAT tax incentives during the epidemic period, and compared and analyzed the GDP data of the tertiary industry in 2020. The COVID-19 epidemic had a serious inhibiting effect on the economic development. The study found that some deficiencies of the preferential VAT tax policies for epidemic prevention and control: the preferential VAT tax policies for epidemic prevention and control need to be improved; The preferential policies of value-added tax in the field of public health need to be strengthened and Indirect taxes, mainly VAT, need to be strengthened to ensure people’s wellbeing. The following suggestions are put forward: defining the scope of application of VAT policy in epidemic prevention and control; formulating systematic preferential tax policies in the field of public health security and to safeguard people's livelihood as the goal of continuous improvement of China’s direct tax and indirect tax system.
Highlights
The COVID-19 epidemic in 2020 has had a serious inhibiting effect on the social and economic development
This paper studied the preferential Value-added tax (VAT) tax policies for epidemic prevention and control in China and made a comparative analysis of the GDP data of the tertiary industry in 2020
The author made some comparative analysis on the preferential tax policies during the SARS period and the GDP data of the tertiary industry, and drew the following conclusions: (1) Tax is one of the important means to regulate the national economy
Summary
The COVID-19 epidemic in 2020 has had a serious inhibiting effect on the social and economic development. According to the GDP data of the first quarter of 2020 released by the State Administration of Statistics, the year-on-year economic growth in this period is negative 6.8%. In order to alleviate the economic pressure brought by the epidemic on enterprises, government departments have introduced many policies to cut taxes and fees. As an important measure of structural reform, tax and fee cuts has helped China move toward high-quality development. During the period of 2020, China will issue preferential VAT tax policies related to epidemic prevention and control. This paper studied the preferential VAT tax policies for epidemic prevention and control in China and made a comparative analysis of the GDP data of the tertiary industry in 2020. The study found the problems existing in the VAT preferential policies in epidemic prevention and control, and put forwarded corresponding suggestions
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