Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model

Value added tax (VAT) reduction is an important tool for cultivating new driving forces for economic development, and it has had a notable impact on local fiscal pressure. Taking the 2018–2019 VAT rate reduction in China as an example, this paper uses a CGE model to estimate the impact of the VAT re...

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Detalles Bibliográficos
Autores principales: Guo, Yue Mei, Shi, Yun Rui
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Economic Society of Australia, Queensland. Published by Elsevier B.V. 2021
Materias:
Analyses of Topical Policy Issues
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9183237/
https://www.ncbi.nlm.nih.gov/pubmed/35702722
http://dx.doi.org/10.1016/j.eap.2020.12.010
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author Guo, Yue Mei
Shi, Yun Rui
author_facet Guo, Yue Mei
Shi, Yun Rui
author_sort Guo, Yue Mei
collection PubMed
description Value added tax (VAT) reduction is an important tool for cultivating new driving forces for economic development, and it has had a notable impact on local fiscal pressure. Taking the 2018–2019 VAT rate reduction in China as an example, this paper uses a CGE model to estimate the impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic. The results show that local fiscal pressure increased from 0.342 to 0.435, an increase of 27.08%. The study provides policy implications on optimizing tax structure and alleviating local fiscal pressure.
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spelling pubmed-91832372022-06-10 Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model Guo, Yue Mei Shi, Yun Rui Econ Anal Policy Analyses of Topical Policy Issues Value added tax (VAT) reduction is an important tool for cultivating new driving forces for economic development, and it has had a notable impact on local fiscal pressure. Taking the 2018–2019 VAT rate reduction in China as an example, this paper uses a CGE model to estimate the impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic. The results show that local fiscal pressure increased from 0.342 to 0.435, an increase of 27.08%. The study provides policy implications on optimizing tax structure and alleviating local fiscal pressure. Economic Society of Australia, Queensland. Published by Elsevier B.V. 2021-03 2020-12-14 /pmc/articles/PMC9183237/ /pubmed/35702722 http://dx.doi.org/10.1016/j.eap.2020.12.010 Text en © 2020 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Analyses of Topical Policy Issues
Guo, Yue Mei
Shi, Yun Rui
Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model
title Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model
title_full Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model
title_fullStr Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model
title_full_unstemmed Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model
title_short Impact of the VAT reduction policy on local fiscal pressure in China in light of the COVID-19 pandemic: A measurement based on a computable general equilibrium model
title_sort impact of the vat reduction policy on local fiscal pressure in china in light of the covid-19 pandemic: a measurement based on a computable general equilibrium model
topic Analyses of Topical Policy Issues
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9183237/
https://www.ncbi.nlm.nih.gov/pubmed/35702722
http://dx.doi.org/10.1016/j.eap.2020.12.010
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