Service industry has such advantages as low resource consumption，low environmental pollution，high economic effect and more employment positions. It is beneficial to the harmonious growth of economy and society for China to strive to develop the service industry and be of great strategic importance to transform the economic development pattern. The tax system is one of the important levers leading the industrial growth. For a long run，there are problems which are bad for the development of service industry in China’s tax system. The valuable experience of the US and India in employing financial and tax policies to support the development of service industry is worthy of reference. China shall complete its financial and tax policies in the following aspects，including supporting service industry through classification to create a diversified investment and financing system，restructuring tax system to gradually form a tax structure based on income tax and supplemented by circulation tax；perfecting the preferential tax policy system of the service industry；improve the level of tax collection and build a equal environment to support the development of service industry.