The Effect Of VAT Reformation On The Tax Burden Of The Air Transport Industry

As the first pilot areas, Shanghai launched the reformation of VAT in January 1,2012. From August 1st of 2012 to the year-end, the range of the renovation of VAT in traffic transportation factory and one part of modern service factory has expanded to ten provinces and cities, they are Zhejiang, Fujian, Tianjin, Beijing, Jiangsu, Anhui, Hubei,Guangdong, Shenzhen, Xiamen. In May 1,2016,the reformation of VAT is taken action in all industries.This paper is based on the data of the air transport industry listing Corporation. The basis of the analysis is the changes of tax system before and after the reform. This study focus on the effect of VAT Reformation on the tax burden of the air transport industry and put forward the suggestion of optimizing the tax policy of China's air transport industry. Calculation and analysis of the impact of reform on the tax burden of the relevant economic entities, This paper is of great significance in the reasonable choice of the economic behavior of air transport enterprises and the further improvement of the industry's value-added tax system.After using the data measured by the air transport industry listing Corporation, we found that the tax burden of enterprises is significantly reduced after changing the value-added tax. According to the data of the annual report of the seven airlines, we had calculated the tax burden from 2008 to 2011 before and after the reform, found that this seven Airlines tax burden is reduced every year. Compared to 2011, the taxes should be pay of this seven airlines from 2012 to 2015 with a certain degree of decline. Among them, China Airlines has the largest decline, which as much as 83.85%. With the full implementation of VAT Reformation in 2016, the scope of the air transport industry to increase the deductible, the tax burden is further reduced, this shows that the role of the reformation.There are still some problems in the process of the VAT Reformation in air transportation industry . The main problems are: the tax burden of some enterprises, the summary of the plight of the tax, fixed assets tax to bring a lot of pressure on the financial and to put forward new requirements for the management of transport invoices after the reformation. To solve these problems, it is recommended to optimize from the following aspects: To improve the proposal of the policy on the air transport industry;deepening the reform of the tax system; to improve the tax collection system.The innovation of this paper is that there are few studies on the influence of the VAT Reformation on the air transport industry. In this paper, the effect of the VAT Reformation on the tax burden of the air transport industry is analyzed and calculated in detail. From the point of view of promoting the development of the industry, it puts forward the suggestion of optimizing the tax policy.