A Study To Replacement Of Business Tax By Value Added Tax Influence On Harbin Transportation Industry

With the advancement of China's economic reform, it has become an inevitable trend to adjust the economic structure. The reform of the new deal which the value-added tax is replacing the business tax gradually has been carried out across the country during the new round of tax reform. The state council set up the first pilot area which levied value added tax instead of the business tax on January 1, 2012, including transportation industry and and part of the modern service industry as the first pilot industry. Among them, the transportation industry applied to the new VAT rate of 11%. On August 1,2013, the implementation range of replacement of business tax with value added tax expanded to the whole country. Harbin is an important hub of the Eurasian continental bridge and air corridor which is in the center of the Northeast Asia, and has a strong transportation function in surrounding areas of our country and foreign countries. On this advantage, in the context of the economic slowdown, the transportation industry of Harbin has achieved steady and healthy development in recent years. Based on the experience of previous pilot areas, "replacement of business tax with value added tax" will reduce the tax burden and improve profit and is good for developing both upstream and downstream market at the same time. As a result, this round of tax reform will bring a challenge, also a new development opportunity in local transportation industry once again of Harbin.This paper reviews the domestic and foreign research status of this problem, summarizes the success and problems of the former pilot area. And we analyze the present situation of transportation industry in Harbin from three aspects in scale, development prospects and taxation.On this basis, through calculating the actual taxation data of transportation enterprises in different industry and different scale, we analyze the influence of the transportation turnover tax incidence and net profit margin of Harbin by replacement of business tax with value added tax. Combining with the previous situation and experience of the pilot areas, we should have a reasonable plan in fixed asset investment, optimize the structure and set a reasonable price, carry out tax planning to reduce tax incidence to deal with the countermeasure by the change of the replacement of business tax with value added tax, and put forward development suggestions about the local transportation industry combined with environmental advantages, such as tax reform, location advantages, industry adjustment and so on.