Study On The Interregional Financial Benefits Of Replacing Business Tax With VAT On Trabsportation Industry

Since the pilot tax reform of replacing business tax with VAT(value-added tax)in 2012,the policy has been comprehensively extended from the “1+6”model of the transportation industry and part of modern service industries to all industries in the service industry.This is not only an important measure for China's structural tax reform,but also an important strategy for adjusting the industrial structure and promoting economic transformation and upgrading.The reform of replacing business tax with VAT is to reduce the tax burden of enterprises,leave them more space to survive and develop,and enhance their financial efficiency.The transportation industry was the first to be included in the scope of the pilot project.Some scholars have shown that in the early period of the pilot reform,the tax burden was not decreased but increased,and the performance of enterprises had not been obviously improved.So they proposed to increase investment in fixed.At the same time,the transportation industry has a stronger relationship with other industries than other services industries,and more closely related to the level of transportation infrastructure and the degree of market integration.Therefore,through the study of the interregional financial benefits of the reform of replacing business tax with VAT in the trabsportation industry,this paper disscussed whether the target of the tax reform for transportation industry has reached the expected goal after 5 years of implementation of the reform of replacing business tax with VAT,and whether the expected goal vary from the level of regional economic development,the level of road infrastructure or the degree of aggregation of transportation enterprises.This paper provides reference for enterprises to improve management and operation efficiency,and also provides reference for the relevant state departments to understand the effect of policy implementation and suggestions for macro control.So this research has some practical signifinance.This paper starts with the research background,research purpose and significance,analyzes the current research status of taxation,financial performance evaluation,and transportation and regional economic relations at home and abroad,introduces the research methods and framework of this paper,and raises the possible creative points of this research.Secondly,this paper initially discusses the connotation and impact of the reform of replacing business tax with VAT,and defines the related concepts of transportation industry and transportation infrastructure,benefits and financial benefits,regional market integration and industrial agglomeration,and divides four major areas of this study.Then it briefly explains the theory of tax neutral theory,tax burden shifting and tax destination theory,new economic geography theory and general equilibrium theory.At the same time,it analyzes the influence of the interaction between the reform of replacing business tax with VAT and various factors on the enterprise,and calculates the critical value the tax reform on the tax burden and profit,which provides a theoretical basis for the study.Thirdly,on the basis of theory,the research hypothesis of this paper is put forward.Three indicators that reflect the financial benefits of the transportation industry are selected: operating profit ratio,ROE and net assets per share by using the cluster analysis method.Set the relevant variables of this article.Then the principle of Double-difference model which adopted in this paper is analyzed and tested.The empirical model is constructed.Based on this,Stata software is adopted to analyze the impact of the reform of replacing business tax with VAT on different regional financial benefits and tax burden.The research result proves that the reform of replacing business tax with VAT has a negative impact on enterprise financial performance,but it reduces enterprise tax burden.Judging from the indicators of financial efficiency,the effect of the reform of replacing business tax with VAT on influence profit ratio and ROE in the eastern region is bigger than that in other regions,while the influence on the net assets per share is the smallest in the eastern region.According to the index of tax burden,the reform of replacing business tax with VAT has the least impact on the turnover tax and additional tax burden in the eastern region,and it has the largest impact in the western region.It also has the smallest impact on income tax accounts for business income ratio in the eastern region,but it is relatively large in the middle and the western region.From the relevant control indicators,the scale of enterprises,the level of economic development and the level of road infrastructure,and the degree of market integration in the transportation industry have positive effects on the three indicators of financial efficiency.The investment in fixed assets and the degree of market integration have negative effects on two indicators of tax burden.Finally,based on the empirical research,this paper conclude and put forward corresponding countermeasures and suggestions for enterprises and related departments.