An Empirical Study On The Effect Of Value-added Tax Transformation On China’s Agricultural Product Processing Industry

In November2008, Chinese State Council executive meeting pointed out that, in order to expand domestic demand, reduce the tax burden of business investment in equipment, promote enterprise technological progress, adjust industrial structure and change the mode of economic growth, China decide to carry out the transformation of value-added tax reform in all regions and all sectors, since January1,2009. The "Provisional Regulations of the people’s Republic of China’s value-added tax (Revised Draft)" had been approved. This transformation of value-added tax conformed to Chinese economic development and eliminated the production of value-added tax’s disadvantages. Because the production of value-added tax is not conducive to encourage investment, weakening the international competitiveness of export products. Chinese agricultural product processing industry, as a pillar industry, which is beneficial to the people’s livelihood, will be much impacted on the transformation of value-added tax policy. In this paper, we use the basic principle of tax, accounting and other subjects, collect142agricultural products processing industry listing Corporation data, establish a multiple linear regression model, and actively explore the effects of transformation of value-added tax on the agricultural product processing industry.1. The purposeThe aim of this study is that:(1) A comprehensive understanding of the transformation of value-added tax for the significance of enterprise, we try to improve the transformation of value-added tax, provide theoretical and practical basis;(2) We want to research and development tax system to promote Chinese economic market and rich the academic research in the field;(3) We try to help the development of agricultural product processing industry, especially in fiscal and taxation aspects.2. Research contentThis paper is divided into five parts: The first part mainly elaborates this topic research background, including the transformation of value-added tax and agricultural products processing industry. And this part clarifies the theoretical and practical significance of this paper as well as the main innovation point.The second part is the literature review. Firstly, we delimit value added tax and the transformation of value-added tax. At the same time, the paper defines the agricultural product processing industry and its classification. We emphasis on current state of the industry, such as the low level of development, tax weight, production equipment behind, lack of innovation, lack of competitive products, the industry suffering a crisis of confidence. Secondly, from three angles of macroscopic, industry, enterprise, we review the literature on influence of the transformation of value-added tax. Finally, in the analysis of the basis of the comprehensive analysis and study of existing research, this study proposed perspective. The industry view selection is the processing industry for agricultural products which is less paid attention to, and the influence selection is tax, value-added tax of fixed assets investment, business performance and development ability.The third part is the research design. We proposed in this dissertation, and then explain he model variables, put forward this hypothesis, structure model selection hypothesis.The fourth part is the empirical part, including the descriptive statistical analysis, paired-samples T test, correlation analysis and multiple linear regression analysis.The fifth part is the result of this study. We compared the result with the hypothesis. Then according to the research object of this paper, this part put forward policy suggestions and the corresponding. Finally, the limitations of this study are explained.3. The main contributionThe main innovation of this paper lies in the following aspects:Firstly, we choose processing industry of agricultural products as the industry sample. Because the industry is got less attention on the study of VAT’s transformation. Secondly, this paper proposes for the first time to consider the long-term impact on the development capacity of processing of agricultural products, in the value-added tax transformation. Finally, we consider the transformation of value-added tax on the full impact of enterprises.There is no denying that, the paper has some limitations, such as the small size of the sample, the narrow variable range. We hope to do a better job in the future study.