Research on Industrial Structure Upgrade in Taizhou Under the Trend of VAT Instead of Business Tax Reform

This paper estimates the tax burden effect of VAT Instead of Business Tax based on the data of Jiangsu province Input-output table,and analyze the mechanism of upgrading industrial structure.The results show that overall tax burden material sector decreased,but part of the service sector increases and others decreased.Tax effect depends on specific organic composition of capital,applicable tax rates and tax types,and the reform promotes the internal industrial structure upgrade through the tax industry difference effect and specialization effect.Finally,we give some suggests on accelerating industrial structure upgrade based on the present situation and insufficiency of Taizhou's industrial structure.