But for being deficient in systematic management and control of tax preference policy, a lot of questions exist in our current tax preference system. It not only influences our country's normal financial income, but also affects the sound development of market economy at the same time.
Since this tool is compatible with China's reform and opening-up policy and economic developmentstrategy, the following measures should be considered for its improvement and optimization: modifying tax preference system forlimiting its negative effects, or setting up tax expenditure system in order to increase management efficiency, or eliminating thedistortional behavior of tax preference's being turned into fiscal rebate by designing a reasonable fiscal and tax system.
At the end of the dissertation, some proposals were tabled to optimize the structure of mining tax and fees, such as the three schemes of VAT transformation, the two-step program of the reform of resourcestax, mineral resources compensation and royalty, the establish of tax preference system aiming at mining activity.
In the recent period,we should set up tax preference system and reform tax deducting measures for the purpose of avoiding double levy and strengthening enterprise international competition.
Tax preference is a kind of policy tool with obvious advantages and disadvantages. On its positive side, tax preference is'self making up' revenues, balancing tax burdens, adjusting economic structures, improving social justice and so on. However, on itsnegative side, tax preference creates high costs, decreases resource allocation efficiency, undermines the competitive status of non-preferred agents, and so forth. Since this tool is compatible with China's reform a...