The Impact Of Value-added Taxation Transformation On Logistics Listed Firms

In 2008, the new revision of The Provisional Regulation of the People's Republic of China on Value-added tax says, since January 2009, the input tax of fixed assets can be deducted when the fixed assets are purchased. The value-added taxation transformation benefits for taxable industries, but at the same time, non-taxable industries may be unable to enjoy the preferential tax deduction of fixed assets and their tax burdens increase relatively. Currently, the research on the impact of value-added taxation on non-taxable industries, for example logistics, is still in the blank. Therefore, from the perspective of non-taxable industry, the paper researches the impact of value-added taxation transformation on logistics listed firms. In this paper, the main research question is:the impact of value-added taxation transformation on tax burden and profit of logistics listed firms and make suggestions for logistics industry.From the two aspects of turnover tax burden and profit, the impact of value-added taxation transformation on logistics listed firms is researched through the empirical analysis in this paper. Also, the impacts are compared between logistics and taxable industries. The results show that the average turnover tax burden of logistics listed firms increases 2.36%relatively. The average net profit margin on sales decreases 0.35% relatively and the average rate of return on common stockholders'equity decreases 0.26%relatively. Because of the value-added taxation transformation, the tax burden of logistics is unfair compared with taxable industries. Then, it has a negative effect on profit of logistics industry.With the event study method, the negative effect is improved. The value-added taxation transformation has a negative effect on average abnormal returns of stock price of logistics listed firms.Finally, based on the problem of unfair tax burden to logistics industry, suggestion is made that make the value-added taxation transformation preferential policy applied to logistics industry.