Study Of The Impact On Tax Burden And Performance Of Substituting Vat For Business Tax In Transportation Industry

Substituting Value-added-tax for Business tax refers to levy value added tax on some taxable items which belong to business tax.It is an important part to deepen finance and tax reform.Because of its prominent position in the national economy and closely connection with the production processes,transportation industry is chosen as the first industry to implement the reform.The reform will be in favor of a complete deduction chain of value-added tax,avoid double taxation,lighten the tax burden and promote the development of the transport industry and national economic.Since implementing VAT system in past three years,the transportation industry's tax burden and performance have had a profound impact.This paper takes the listed transportation companies as the research object and analyze the tax burden and performance level of before and after the reform by using qualitative and quantitative research methods.This paper explains the reasons for the variances of transport sub-industry's tax burden and performance's trends in gross margins and deductible items,and propose recommendations to improve the policy.The analysis shows that the tax burden and performance level of transportation listed companies are adversely affected by the reform.The impact will depend on the tax rate,gross margins,ratio of deductible fixed asset to total operating revenue and the ratio of deductible cost to operating cost.Differences between these indicators make the tax burden and performance of transportation sub-industry show different trends after the reform.Specifically,highway transportation and airport ancillary transportation with higher gross margins and lower deductible items ratio have higher tax burden level,while waterway transportation,air transportation and port transportation with lower gross margins and higher deductible items ratio have lower tax burden level.Therefore,from the perspectives of government and enterprise,this paper proposes to expand the scope of deduction,improve the tax incentive policy and tax collection levels,strengthen enterprise management and improve tax planning to help the reform smoothly implement,promote the development of transportation industry and national economic.