Research On The Impact Of VAT Rate Reform On Industry Tax Burden

VAT tax is the core of a country’s tax system.China’s VAT has undergone several major adjustments and changes since its establishment.The State Council executive meeting decided on three measures to deepen the reform of value-added tax on March 28,2018.This paper studies the impact of the changes of the VAT rate’s policy on the industry and the economy.First of all,this paper introduces the related concepts of value-added tax,the content of tax reform and the theoretical basis of input-output analysis along the theoretical model,data analysis,and logical suggestion of policy recommendations.Secondly,the paper combines the tax theory with input-output method and builds a model of the impact of VAT rate’s change on various industries,and analyze the impact of tax rate’s change on the tax burden of 42 industries on a multi-level basis in 2018.The results show that the average tax burden of the industry is about 0.29%,which is beneficial to reduce the tax burden for 32 industries such as coal mining and selection products industry and metal products industry.For those 10 industries such as accommodation and catering industry and financial industry,it is negative for the tax burden.Generally speaking,this reform is conducive to the decline of overall industry tax burden.It promotes the industry development and accelerates the optimization and upgrading of industrial structure and industrial transformation.On this basis,the paper measures the impact of the 2018 VAT rate reform on the top ten industries of new and old kinetic energy conversion in Shandong Province.It turned out that it has the same role in the high-end equipment industry,new energy and new materials industry,modern marine industry,high-end chemical industry and modern high-efficiency agricultural industries.It has reduced the tax burden of these industries and is conducive to the development of the industry.However,for those industries such as information technology industry,medical care industry,cultural and creative industries,boutique tourism industry and modern financial services industry,it had a negative effect and increased tax burden.According to the characteristics of various industries,the paper proposes some coping and reasonable suggestions in this regard.Related industries should improve their innovative ability and increase investment on research.Gradually they can transform from asset-heavy to asset-light enterprises and make good use of rate reform policies and tax planning.At the same time,the government should promote related preferential tax policies,build a platform for tax policy feedback,launch the risk sharing mechanism,and actively guide enterprises to make good use of the preferential tax policies.Only in this way,can all industries enjoy the preferential policies.