Deepening The Logistics Industry, "Camp Changed To Increase The" Reform Pilot Study

Nowadays, as a combination service of transportation, warehousing, freightbroking and stevedoring, the development of modern logistics industry are receivingmore and more widely attention The two current five-year national plans, as known asNational\"11th five-year plan\" and\"twelfth five-year plan\", both emphasize andrequire to enhance the modern logistics industry, especially reduce tax burden oflogistics enterprises. In order to solve the double taxation problem existing in bothgoods and services tax system, the government launched a structural tax cuts policy,i.e., business tax paid VAT, which can also improve the tax system and support allaspects of logistics industry development.Famously known as “camp to increase”, which is abbreviation for business taxpaid VAT, this policy is to impose value added tax for industries in China which arepaying sales tax currently. This change is considered another important structuralreform of tax cuts after the VAT reform in2009.Starting from January1st,2012, StateCouncil decided to carry out the business tax paid VAT reform in transportationindustry and part of modern service industry in Shanghai. The public expected a lotfrom this experiment. From August1,2012to the end of year, the experiment wereextended in several batches from Shanghai to another10provinces, municipalitiesdirectly under the central government, and cities under separate state planning,including Beijing, Tianjin, Jiangsu, Zhejiang, Anhui, Fujian, Hubei, Guangdong,Xiamen and Shenzhen. From August1,2013, the whole country started to carry outthe tax change paid VAT policy in the aforementioned industries. In principle,“Campto add”, should aim not to increase tax burden on companies. On the other hand,because logistics industry itself is a low profit business with special cost constitutionand some companies don’t have enough input tax deductible, some logisticsenterprises need to pay more tax under this policy, which is opposite to the originalpurpose of this tax policy.This article focuses on empirical analysis, and has following innovation in threeaspects: First, research the “camp” influence on modern logistics industry throughsample data as much as possible, calculate and compare the transportation and logistics support services business tax situation before and after the change of paidVAT tax. This research also checked annual reports of listed companies on thetransportation industry by concrete analysis combined with specific case analysisfrom the perspective of promoting the development of logistics industry, then drawsthe relatively reasonable VAT on transportation industry, finally propose thecorresponding policy recommendations; Secondly, this article did empirical researchon the tax influence of "camp" to the logistics support service. Similar, it’s combinedwith specific case analysis before and after the reform of tax changes, and analyzes itscause. Third, this article did an empirical study of logistics enterprises in Yunnanprovince. The study checked their annual report according to the group of its relatedcompanies before and after the reform of tax changes for detailed analysis.This paper still needs many improvements and further study. Currently the sampledata is only based on financial data on year2011for13listed companies intransportation sector. Insufficient sample data, together with different IPO time,varied primary business and scale for each company, the analysis results may notreflect all transportation tax changes and vary from unique condition of each company.Such disadvantages may make the conclusion of this article a little inaccuratecompared to the actual operation status of each company. This will be improved infuture study.