Incentive Effect of Tax Expenditure to Hi-tech Industry

After estimating the overall output,turnover tax burden and income tax burden of nanjing high-tech industry and out put,turnover tax burden,income tax burden of seven industry in hi-tech industry,the results show there are structural difference in the incentive effect of tax expenditure.The incentive effect of(A1) space flight manufacturing,(A4) Pharmaceutical Industry,(A5) special scientific instruments industry is not significant,there is no incentive effect.The incentive effect is different in the rest four industries,and the incentive of turnover tax is stronger than income tax.So the government should use targeted tax expenditure policies to accelerate hi-tech industry development.And government should change current income tax as main incentive tax category into turnover tax and income tax as two main incentive tax categories.