Study on the Impact of Changing Sales Tax to Value-Added Tax on Local Financial Revenue-Take Chongqing as an Example

This paper aims to study and reveals a tremendous impact of changing sales tax to value-added tax on local financial revenue and the corresponding countermeasures. Article estimated the tax conduction effect of local government (take Chongqing as an example) in 2015. The results showed that by 2015, after the reform (changing sales tax to value-added tax) full coverage, Chongqing revenue will decrease 60.5 billion yuan. Decline in local revenues is extremely severe situation. Article recommend: explore the formation of a relatively independent local tax authority system, form a relatively stable local revenue scale, forming a relatively coordinated tax management relationship.