An Analysis On The Change Of Tax Burden On Transportation Enterprises' Purchases Of The New Energy Buses After The Replace Business Tax With Value-added Tax Reform

The Replace Business Tax with Value-added Tax policy has caused tax changes in the whole transportation industry in China.In this paper,we have chosen a listed transportation enterprise-JY group-as a case study,and analyzed the the tax change on JY group's purchase of the new energy buses under the new policy.Our research has taken the characteristics of transportation enterprises ' passenger services into consideration and put forward a suggestion of gradually replacing existing fuel buses with the new energy buses.The presumptive price of the new energy bus we used in this paper is based on the research on the average price of the sample new energy buses.We have also come up with the optimum lifespan of these buses through static analysis and dynamic analysis.Based on the assumptions mentioned above,we have compared the the new energy buses and fuel buses on their value-added tax,enterprise income tax,vehicle purchase tax and other relevant tax on the purchase,operation and disposal of the buses.By analyzing the tax effect that caused by new energy buses and fuel buses purchases,we have come to the conclusion that even though purchasing fuel buses has a more significant advantage on tax cuts in the long term,new energy buses can lead to a positive value of "tax effect" in the short term,which will reduce the enterprise's tax burden and effectively alleviate the pressure of the enterprise's cash flow in the long term.In addition,when you take other cost into consideration,purchasing new energy buses makes more economic sense in general.Ultimately,Replacing the existing fuel bus with the new energy buses would allow the enterprise to get higher rates of return on investment.