Research On The Efficiency Of Transportation For The Business Tax Reform To VAT

The transportation industry is the basic industry of the national economy. However, compared with the developed countries, the current situation of the development of our country’s transportation industry is far away, and it is unable to meet the needs of the rapid development of economy. The unreasonable tax system is an important restriction factor, especially the distortion of the normal operation of transportation industry is more and more serious, which is caused by the double taxation of the collection of business taxes, and the internal conflicts and irrationality is emerging day by day. Based on this background, the trial tax reform(replace VAT with business tax) of transportation industry began at Shanghai, 2012.1.1.Since the reform of the transportation industry, there is no agreement about the study on the effect of the “business tax reform to VAT”. On the basis of reviewing the literature, this paper collect the three consecutive period panel data of 30 companies and use the DID method to make a study on the effect of the tax reform systematically from the three angles of tax burden, investment, and performance, and the conclusions of the study are as follows:(1) Compared with the transportation enterprises that are not the pilot areas, the tax burden of the pilot areas decreased obviously, which is 8.58% lower than before, but it has a lag period of a year and a half.(2) Compared with the transportation enterprises that are not the pilot areas, the performance of the pilot areas increased by 2.81%, and it also has a lag period of a year and a half.(3) However, the investment to the pilot areas’ transportation enterprises has not been influenced obviously.