Research Of The Impact On Tax Burden And Solutions Of ’BT To VAT’ On Transportation Industry

Value-added tax(VAT) and Business tax(BT) are commodity turnover taxes. BT levy repeatedly and increase corporate tax burden. With the development of economy in our country, the disadvantages gradually exposed. This mode is not conducive to exert VAT’s neutral advantages, and results in breaking the chain of VAT deduction.Besides, two tax systems exist, which want not meet international standards. BT to VAT in transformation has become an inevitable choice to change the present situation and achieve the purpose of structural tax cut.Based on domestic and international data, we find out that since the implementation of ‘BT to VAT policy, the reform effect emerged gradually which has reduced the tax burden and increased economic profit. Tax burden of transportation small-scale taxpayers has been reduced and small-scale taxpayers benefited more.From this perspective, ‘BT to VAT has realized its purpose and expected results.However, most of the transportation general taxpayers have increased rather than decreased the tax burden.In response to this phenomenon, this article selects literature research, factor analysis, empirical analysis, and analyzes the influence of VAT reform from the tax aspect with a sample of listed companies in the transportation industry and the factors of tax change. In the empirical study, this article selects 48 listed companies semi-annual financial statements which belong to transportation industry, then analyzes the sample data from descriptive statistical aspect with SPSS21.0 software.We choose net profit margin on sales, debt to total assets ratio, total assets turnover,growth rate of fixed assets from profitability, solvency, operating capacity and development capacity of company which influence the tax burden, and develop the multivariable linear regression model. After the analysis, we conclude that: the tax levels of transportation industry listed companies have increased to different degrees after the implementation of ‘BT to VAT’, and the four factors have significant influence on tax burden.After these studies, we propose suggestions to solve the problem of tax rises. On the one hand, the government needs to lower rate, expand the scope of the deduction and create some support policies. On the other hand, enterprises themselves need to strengthen accounting staff training and improve financial management, through internal tax planning to achieve the goal of lower taxes.