The basis for calculating the urban maintenance and construction tax is value-added tax.
As we walk through the streets and alleys of the city, enjoying the clean streets, tree-lined parks, and various amenities, have we ever wondered what taxes are quietly playing a role behind these beautiful environments?Today, we will talk about one of the important taxes - urban maintenance and construction tax.
To understand the urban maintenance and construction tax, we must first understand its tax basis. Many people may wonder why this tax is calculated on the basis of VATThis has to start with the nature of taxation. Taxation is a form of fiscal revenue obtained by the state by virtue of its political power to participate in the distribution of social products in accordance with the law in order to meet public needs. To put it simply, taxation is "taken from the people, used by the people".
Urban maintenance and construction tax, as the name suggests, is a tax levied for the maintenance and construction of a city. In the early days of reform and opening up, with the rapid development of China's economy and the acceleration of urbanization, the maintenance and construction of cities has become an important task of the country. In order to let more people understand the tax policy and increase the transparency of taxation, the "Provisional Regulations of the People's Republic of China on Urban Maintenance and Construction Tax" was promulgated in 1984, which clarified that the basis of urban maintenance and construction tax is the sum of the three taxes payable by taxpayers: value-added tax, consumption tax and business tax. This means that as long as an enterprise produces and sells goods or provides services, and generates value-added, it needs to pay urban maintenance and construction tax.
So, why choose VAT as the basis for calculating urban maintenance and construction tax?This is because VAT is a general and well-levied turnover tax, which has a wide range of taxation and involves all aspects of goods and services. In this way, the urban maintenance and construction tax can also cover various industries and fields with the collection of value-added tax, ensuring the fairness and universality of taxation. At the same time, linking the urban maintenance and construction tax with value-added tax, consumption tax and business tax can also prevent enterprises from evading these three taxes to a certain extent and improve the efficiency of tax collection and management.
So, specifically, how is the urban maintenance and construction tax calculated?According to the Provisional Regulations of the People's Republic of China on Urban Maintenance and Construction Tax, the tax rate of urban maintenance and construction tax varies according to the location of the taxpayer. If the taxpayer is located in the urban area of the city, the tax rate is 7%;In county towns and organized towns, the tax rate is 5%;If it is not in the urban area, county seat, or organized town, the tax rate is 1%. This means that if a business pays 100 yuan of VAT in the urban area, then it also needs to pay 7 yuan of urban maintenance and construction tax. The funds will be used for the maintenance and construction of the city, such as road repairs, greening projects, construction of infrastructure such as water supply and power supply, and public safety.
In addition, it is worth noting that there are certain exemption and exemption policies for urban maintenance and construction tax. According to the regulations, for imported goods or services, because there is no domestic value-added amount, no urban maintenance and construction tax is levied. At the same time, for the reduction and exemption of value-added tax, consumption tax and business tax due to force majeure factors such as natural disasters, the urban maintenance and construction tax can also be reduced or exempted accordingly. This shows the flexibility and fairness of tax policy.
To sum up, as an important local tax, it is very reasonable for urban maintenance and construction tax to choose value-added tax as the basis for taxation. It can not only ensure the universality and fairness of tax collection, but also improve the efficiency of tax collection and administration. The purpose of levying the urban maintenance and construction tax is to meet the maintenance and construction needs of the city and make our living environment better. Therefore, as taxpayers, we should actively fulfill our tax obligations and contribute to the prosperity and development of the city. At the same time, tax revenues should also be used rationally, improve the level and quality of public services, so that taxpayers can truly feel the benefits of "taking from the people and using them for the people".