Empirical Analysis Of Tax Changes After "Replacing Business Tax With Value-added Tax" In Construction Industry

It has been more than a year since construction,real estate,finance and living service industry,all as the departments in the last step of totally implement of “Replacing the business tax with a value-added tax” policy,have been included in the pilot scheme in May 1,2016.Construction is the pillar industry of national economy and contact closely with upstream and downstream industry,thus,the implement of “Replacing the business tax with a value-added tax” policy in construction industry has a important influence on the development of national economy and upstream and downstream industry.Since the initial implement of plots scheme in 2012,the rectification of “Replacing the business tax with a value-added tax”policy,variation of tax burden and effect on construction industry have drawn the attention of all social circles.According to The Chinese Totally Implement Of“Replacing the business tax with a value-added tax”Policy Annual Review,the achievement of tax cuts is remarkable:from May,2015 to April,2016,the gross tax cuts is up to 700 billion Yuan.the difference of tax cuts between each sector is obvious despite all plots sectors cut tax.The highest tax cuts ratio,which located in telecommunication industry,has reached up to75.8%,whereas the lowest tax cuts ratio,which located in construction industry,is only 3.5.Given the background illustrated above,the data of tax burden after implement of“Replacing the business tax with a value-added tax” policy has been calculated and statistical analysis in macro and micro level by this article,according to macro data analysing of ChongQing 2015 input-output list,tax burden will completely and substantially decrease;based on micro statistic of ChongQing,district Y report after implement of “Replacing the business tax with a value-added tax” policy,the large scale tax cuts has been realized in construction industry in one year,the tax burden is decreased or remained static,which shows a extensive result.However,tax increasement occurred in a few business,this may related to the character of construction industry,financial management of business and incompletely policy.Although this phenomenon is a locality contradiction,it still has a negtive influence on the implement of “Replacing the business tax with a value-added tax” policy.Thus,while continuously improving “construction industry” added-value tax policy,the state tax department should improve management of tax revenue to help business which suffered increased tax burden to pass the experimental period smoothly.Six chapters were included in this article:Chapter one is the preface,background,research significance,current review and research methods were illustrated,and the innovation of this article were pointed out;Chapter two is the summary,character and situation of current Chinese construction industry,theoretical basis of “Replacing the business tax with a value-added tax” policy were summarized,and the shortcoming of business tax in construction industry,difference between business tax and value-added tax were compared and analysed.Chapter three is the statistical analysis,variation of tax burden after after implement of“Replacing the business tax with a value-added tax” policy were analysed in macro and micro level,the related date of ChongQing 2015 input-output list were calculated to show the situation after implement of “Replacing the business tax with a value-added tax” policy in macro level,and four representative business which suffered increased tax burden were chosen from filed business report data after implement of “Replacing the business tax with a value-added tax” policy,and variation of tax burden of them were descriptive statistic analysed.Chapter four is the induction,tax increasement occurred in some business after implement of “Replacing the business tax with a value-added tax”policy and problem emerged in value-added tax imposing were induced and underlying reasons were analysed;Chapter five is the supplement,advices to resolve the problem about value-added tax imposing discussed above were offered.Conclusion were showed in Chapter six.