Study On China’s Logistics Industry Of Replacing The Business Tax With A Value-added Tax Policy

To replace the business tax with a value-added tax in some industries such as transport, postal services, telecommunications and other modern business is not only a majortax reform following thetax reform in1994, but also a promotion of industrial re-structuring and economic development. As one of the most important industries in-volved in this reform, the replace of the business tax with a value-added tax has a pro-found influence on the development of the logistics industry, especially on the tax bur-den of the logistics industry.This paper aims to examine the impact of the replace of the business tax with a value-added tax on logistics industry’s and different plates of logistics’tax burden by the use of input-output models and the analysis of key logistics enterprises survey data. The input-output model shows that if the company’s all outsourcing projects can achieve input tax deduction, the tax burden of cargo services and total tax burden in lo-gistics enterprises may stayconstant or slightly reduced. But in the practice, only about65%input tax is deductible.In this situation, the total tax burden may increase1.70%and1.40%respectively for cargo services and logistics enterprises after the replace of business tax with a value-added tax. This paper found that the increase of tax burden after the tax reform was most significant for transport and courier industry, then cargo agents and other logistics. Warehousing industry stood constant.In addition, there are still some deficiencies in the current tax policy of replacing the business tax with a value-added, such as the still unresolved various aspects of the logistics industry’s tariff and taxable items are not uniform.On the basis of the tax policy, this paper focus on the current problems of logistics industry after replacing the busi-ness tax with a value-added tax, combing the study of abroad logistics of goods and ser-vices tax, drawing on international logistics industry experience in tax policy, and put forward the recommendations of replacing the business tax with a value-added tax for China’s logistics industry.