Analysis Of The Impact Of Business Reform Increase On Tax Burden Of Construction Industry In X Province And Countermeasures

China first tried out value-added tax in 1979,and formally established the tax system of business tax and value-added tax in 1984.Since then,China’s market economy has been developing rapidly and gradually improving,and the drawbacks of the tax system of double taxation of business tax and value-added tax have gradually appeared.In 2011,the ministry of finance,together with the state administration of taxation,issued a pilot program of replacing business tax with value-added tax.The construction industry is a pillar industry in X province,but excessive competition and irregular management have narrowed the profit space.After the implementation of "replacing business tax with value-added tax",it is particularly important to deal with the relationship between the government and construction enterprises in terms of taxation.Therefore,this paper studies the impact of replacing the business tax with a value-added tax on the construction industry and possible countermeasures.Firstly,this paper listed the research literature and theoretical basis of replacing business tax with VAT at home and abroad,compared the differences between business tax and value-added tax in collection management,tax planning method and collection scope,and on this basis,this paper made an in-depth analysis of the feasibility and advantages of implementing "replacing business tax with VAT" in the construction industry.Then in this paper,the X province development situation and the current construction industry tax is analyzed,from the Angle of tax take cost analysis for proper adjustment,VAT tax calculation model is constructed,from X province current tax structure,and calculates the samples selected from the status quo of the construction industry,from the aspects of data presented to add "camp" implementation of X province after tax changes of the construction industry,this paper builds the model calculation result is: the "battalion to add" policy,tax burden of X province construction industry presents a certain degree of decline.Since the average tax rate of input business is higher and the proportion of input business price in the construction and installation cost of business tax is obviously higher,the construction and installation cost and tax payable of the selected sample projects have been reduced after the implementation of "replacing business tax with Value-added Tax".Secondly,in combination with the actual situation of the construction industry in X province,this paper calculates the model through specific data,and the calculation results demonstrate the factors affecting the tax burden change of the construction industry affected by "replacing the business tax with a value-added tax" from both practical and theoretical perspectives.The demonstration results show that the main factors affecting the tax burden change of the construction industry are the few input tax deduction of supply materials,some local materials and labor costs,etc.The calculation results obtained from the data model of X province also confirm the above conclusion.There is a very sensitive negative correlation between the actual deductible input tax and the tax burden of the construction industry,and the critical value of data calculation is 52.4%.Finally,in view of the tax burden of the construction industry in X province after the implementation of "replacing business tax with value-added tax",this paper puts forward targeted Suggestions and countermeasures from the perspective of enterprises and the government.