The Optimal Taxation Of Logistics Industry In China

The tax burden is one of the most pointed and sensitive issues about the national economy and the people’s livelihood, and also one of the most controversial research areas. Discussion on the optimal taxation has not formed a unified conclusion. What’s more, very few study of the optimal taxation on a specific industry has been done, especially in emerging industries such as China’s logistics industry. Logistics industry which associated with the production and circulation of the society is still in its initial stage in China, it plays an important role in the smooth running of the socio-economic. Therefore, the analysis of optimal taxation will help promote the development of China’s logistics industry and this paper will study the optimal taxation of China’s logistics industry were.This paper estimates the optimal taxation of the logistics industry by combination of theory and empirical research. The shortcomings of China’s logistics industry in the tax system have been found and recommendations have been made to promote the development of the logistics industry. By the analysis of theoretical knowledge of tax burden, an optimal tax burden model has been made, which is called Cobb-Douglas production function expansion mode and Barro Model. Based on the model, the optimal taxation of the logistics industry has been estimated by analyzing the data of logistics industry. And the actual tax burden is calculated by Revision-balance-profit method. Contrast Analysis on the optimal taxation and the actual burden level showed that the tax burden of the logistics industry in China is too much high. And high tax burden would not be conducive to the development of the logistics industry. Considering that the logistics industry is an industry with a low VCR (value to cost ratio), China should reduce the tax burden in order to promote the development of logistics industry.