Replacing Business Tax With VAT?Government Behavior And Enterprise Innovation

"Replacing business tax with value-added tax" started in 2012 is a milestone event in China's tax reform in recent years,which has improved the deduction chain between industries and promoted the development of industrial division of labor and vertical integration.The impact of "replacing business tax with value-added tax" on enterprise innovation has always been a hot topic in academic research.China's economic development since the beginning of this "new normal",for low-end industrial products production and export oriented model of dominant mode of economic growth is no longer feasible,traditional elements drive economic growth no longer has the advantages of enterprise innovation ability is a "new normal" under the concentrated reflection of the new kinetic energy,becoming the core power drive economic development.The third Plenary Session of the 18 th CPC Central Committee held in 2013 proposed for the first time to comprehensively deepen reform and include regional innovation achievements in the performance assessment of local governments,which will greatly enhance the initiative of local governments to promote the innovation ability of their regions.Therefore,in the process of studying the impact of "replacing business tax with value-added tax" on enterprise innovation,it is necessary to combine "replacing business tax with value-added tax" with government behavior,which is also a hot issue that scholars pay close attention to.Based on this,this paper is devoted to studying the influence of "replacing business tax with value-added tax" on enterprise innovation by local governments under the background of performance appraisal pressure.First of all,this paper combs and summarizes the existing literature from three aspects: the tax reduction effect of "replacing business tax with value-added tax","replacing business tax with value-added tax" and enterprise innovation,and government behavior and enterprise innovation.On this basis,this paper analyzes the fiscal and economic effects of "replacing business tax with value-added tax" and the government's role in resource allocation and market regulation.With the support of the theoretical framework of Chapter 2,this paper begins to study the comprehensive impact of "replacing business tax with value-added tax" and government actions on enterprise innovation.Based on the theoretical basis and research purposes,this paper puts forward four hypotheses: Hypothesis 1 mainly explores whether the policy of replacing business tax with value-added tax has achieved the expected effect--reducing tax burden;Hypothesis 2 mainly explores whether "replacing business tax with value-added tax" can promote enterprise innovation.Hypothesis 3 mainly explores the impact of government actions on enterprise innovation.Hypothesis 4 mainly explores the impact of replacing business tax with value-added tax on enterprise innovation in the case of government "innovation incentive".This paper selects a-share listed companies on Shanghai and Shenzhen stock exchanges from 2008 to 2018 as initial samples,establishes multi-period double difference and triple difference models for analysis,and conducts balance test.In this paper,the research results show that the first,the policy of "camp to increase" significantly reduces the pilot enterprises current taxes,instructions to add "camp" policy pilot really played the desired effect,straighten out the input-output relationship between the industry,but from the perspective of the tax burden of delayed 1-2),"camp to add" policy has a tendency to increase industry tax burden,but the significance level,that policy is still not perfect place,such as service industry tax rates rise several times,the problem such as the lack of a large amount of input tax can be deductible;Second,"camp to add" policy does not increase the business innovation of current spending,it may be that the policy of enterprises,hit the lower r&d spending in response to a possible business difficulties,but it is worth noting that the "battalion to add" can increase the enterprise future of spending on research and development,but the empirical shows that the promoting effect is not obvious,the moment in the complex market environment,the local government policies,the protection of intellectual property rights,the region will affect the decisions of the enterprise.Third,when the government has "innovation incentive",the policy of "replacing business tax with value-added tax" can significantly increase enterprises' innovation input,which indicates that when the government has "innovation incentive",the effect of "replacing business tax with value-added tax" on enterprises' innovation is amplified.Heterogeneity study found that for those enterprises in economically backward areas,even if the local government has "innovation incentive",the role of government in guiding enterprises to increase innovation input is not significant.Based on the above research,this paper puts forward four Suggestions: first,adhere to the supply-side structural reform of tax reduction policy orientation,listed enterprises should establish a strict accounting system to reduce the enterprise turnover tax burden;Second,adhere to improve the evaluation system of development achievements,increase the proportion of innovative achievements in the evaluation of political achievements;Third,we will continue to improve the mechanism for protecting intellectual property rights.