Abstract: Government's tax has an important impact on industrial development, but few empirical studies provide empirical evidence on the impact of corporate income tax on industrial development.Hence, the relationship between enterprise income tax and the growth rate of enterprise sales income, using the sample of A-share listed companies in Shanghai and Shenzhen during the 12th Five-Year Plan period(2011-2015), will be studied to test the potential effect of government economic measures on industrial development.Statistical tests show that the increase of tax burden has an inhibiting effect on the growth rate of sales revenue;and higher tax burden has a higher inhibiting effect than lower tax burden.Besides, the inhibiting effect on lower revenue enterprises is stronger than higher revenue enterprises.Further research showes that the possible channels of inhibiting the growth rate of sales revenue are presented as follow:when the tax burden increases, the growth rate of sales revenue of products(projects)with the largest proportion is substantially affected by the increase of tax burden, and the growth rate of sales revenue of products(projects)with the largest proportion substantially affects the overall growth rate of sales revenue of enterprises.The growth rate, through the interaction between the increase of tax burden and the growth rate of the products(projects)sales revenue of with the largest proportion, will have a inhibiting effect on the overall growth rate of sales revenue of the enterprise.The new insights and empirical evidence are provided for government decision-making departments to deal with the relationship between tax revenue and industrial development.