Qinghai Province is an underdeveloped area with the lowest economic aggregate in the country, and the development gap between Qinghai Province and inland provinces continues to expand due to such factors as poor natural environment, sparse population, low local financial self-sufficiency rate, excessive development debt, and deep poverty. At the same time, as a western province with a large number of ethnic minorities, under the influence of the "three evil forces" that have been rampant in recent years, our province has to do a good job in social stability while concentrating on developing the national economy and improving people's living standards. In the face of the grim situation, if we allow the development gap to continue to expand, some prominent difficulties and problems that restrict development cannot be fundamentally solved, which will seriously affect the process of building a well-off society in an all-round way in our province. At this time, the significance of this discussion is to think deeply and discuss how to better play the leverage role of taxation in the national economy and accelerate the sound and rapid development of the economy and society in the minority areas of our province. Through a detailed interpretation of the relevant tax policies of our province and a field visit to enterprises, the author summarizes the following problems in the current preferential tax policies of our province:

First, the advantages of preferential tax policies in our province are not enough. As a western ethnic minority area with backward economy and poor infrastructure, our province has already shown a lack of "bottom line" in attracting internal and external investment and accelerating economic development. Tianjin Binhai New Area, Chongqing Urban and Rural Comprehensive Supporting Demonstration Zone, Central Plains Economic Zone and other regional economies have risen rapidly because of the special fiscal and tax policies given by the state, In particular, after the Lanzhou Economic Belt in Gansu Province, which is adjacent to our province, was identified as the fourth national special economic zone by the State Council in 2011, our current preferential tax policies are more advantageous than others. Practice has proved that implementing a sufficient amount of preferential tax policies is the most effective way to improve the soft investment environment in our province.

Second, the preferential tax policies are lagging behind and the industrial orientation is unclear. As an underdeveloped province, the preferential tax policies of our province should be more related to the improvement of people's livelihood, economy and infrastructure environment, especially in transportation, energy, water conservancy, and industries with national characteristics. However, the reality is that after the coastal developed provinces started a new round of industrial structure upgrading, the population intensive and high consumption polluting industries gradually moved to the central and western regions. In addition, the abnormal forms of residential real estate and commercial real estate derived from land finance expanded rapidly, which led to the local government's urgent need for people's livelihood, large investment scale, long business cycle The basic livelihood industries that are slow to achieve results lack interest and support, and short-term investment, venture investment, and performance investment are popular.

Third, there is a lack of regional preferential policies, and the development of ethnic minority areas is lagging behind. Most of the regions in our province are located in high and cold regions, with very bad natural environment. At the same time, these regions are often ethnic minority areas and extremely underdeveloped areas. Enterprises and individuals Tathagata invest in ethnic areas in our province, with more investment costs than inland areas. Without a very preferential tax policy, it is difficult to attract capital inflows. Under the general background of the implementation of preferential tax policies across the country, it is urgent for the relevant departments of our province to introduce preferential tax policies that are in line with the conditions of our province and the people.

Narrowing the economic gap between our province and the inland developed provinces is the essential requirement of the socialist system and is related to national unity and the overall interests of the Chinese nation. To promote the rapid development, social stability and prosperity of ethnic minority provinces and western provinces, and narrow the gap between the rich and the poor is also an important goal of the 18th National Congress of the Communist Party of China. Therefore, the author suggests to further optimize the preferential tax policies of our province from the following aspects:

First, increase the measures to exempt new enterprises from income tax in minority areas of our province. For example, enterprises established in Yushu, Golog and other minority areas in our province can be exempted from income tax from the first to the fifth year, and the income tax will be halved from the fifth to the tenth year. At the same time, the income tax of rural credit cooperatives and microfinance enterprises in such areas should be appropriately reduced or exempted.

Second, we will pay taxes in ethnic areas on the spot and increase financial returns. In order to alleviate the serious shortage of financial resources in the process of economic development in the minority areas of our province, enterprises can be set up in the minority areas to pay on the spot, and used for infrastructure and livelihood facilities construction in the form of financial return to make up for the lack of funds.

Third, increase the reduction and exemption of VAT in ethnic areas. In order to support the development of industries with ethnic characteristics and ethnic trade enterprises in our province, it is suggested that enterprises that produce and sell ethnic concessions, produce necessities of life, halal food, carpets and clothing and other traditional handicrafts in ethnic areas should be given preferential policies for VAT reduction and exemption. At the same time, in order to better support the construction of "agriculture, rural areas and farmers" in our province and promote better and faster development of rural economy and society, it is recommended to continue to increase preferential tax policies related to agriculture. (Lei Xia, Party School of the CPC Hainan Prefecture Committee)