Research On The Tax Burden Of The Transportation Industry For The Business Tax Reform VAT

The VAT Reform Pilot Program refers to that the business activities which should be originally collected business taxes in accordance with the our country’s tax regulations now shouldn’t be collected the business taxes,but they should pay the value-added tax.The important target of this tax reform is to aviod the double taxation problem caused by business tax and to connet the deduction chain of value-added tax,and this tax reform also can promote the deepening development of relevant industries and the improvement of the fiscal and taxation system in our country.the reform of substituting the VAT for Business Tax started to beimplemented in transportation industry and six kinds of service industry in Shanghai in January 1,2012,which is the first step of the tax reform. Currently the VAT Reform Pilot Program has gradually expand to 31 provinces,cities and autonomous regions,and expanded to every industries in addition to the financial, construction, estate and the traditional service industries.the transportation industry also expand to every industies, since the Premier of the State Council,Li Ke Qiangannounced to includ the railway industry into the Pilot Program in January 1,2014.Since when the reform of substituting the VAT for Business Tax started to be implemented,it has basically cut the relevant industries’ structualtax,and had a profound impact on transportation industry in many aspects.Taking the optimal tax theory, "smiling curve" theory as the theoretical basis and the fanacial data of the listed transportation companies as the empirical basis to analyze the deficiencies in the business tax on transportation industry and the benefits from the VAT Reform Pilot Program. In the empirical part of the paper,the author sets a reasonable caculating method to mesure the effecs from the “The VAT Reform Pilot Program”on the transferring tax and overall tax burden of the transportation industry from the financial data in nearly three years of the 25 listed transportation companies. In addition,the paper analyze why the tax burden of some transportation companies not decline burise.Finally,the author proposed some advices and provide some referring on the “The VAT Reform Pilot Program in transportation industry.