The Analysis Of The Income Of Wastewater Treatment BOT Project Under The Influence Of Tax Policy

The construction of large-scale infrastructure projects demand of our country make public finance faces a huge gap,the state vigorously develop the Public-Private-Partnership(PPP)model.As the most typical form of PPP model in our country,the application of BOT model in wastewater treatment projects more and more widely.Due to the continuous development of Chinese economy,the corresponding tax laws and regulations will be modified according to the actual situation.At the time of signing the project contract,both parties to the contract can not predict the future of the tax policy changes and other uncertainties.Because the BOT project contract has the characteristics of incomplete contract,both parties to the contract must seek a solution to the new problem by means of renegotiation.The change of the tax policy for wastewater treatment industry in 2015 will have an impact on the income of the project during the concession period,and then may affect the application of the BOT model.The change of tax policy is a typical policy change risk,which should be taken by the government departments,and can be taken into consideration to improve the franchise price or extend the franchise period.This paper analyzes the reasons of VAT policy changes impact on the wastewater treatment BOT projects,from the angle of tax burden and the price of sewage treatment analyze its influence,and build the relevant income evaluation model.Based on the analysis of the incomplete contract,this paper puts forward some measures to adjust the project risk in the public and private sectors when the risk factors change during the operation.Then this paper through case studies to verify the impact of VAT policy changes on the benefits of BOT wastewater treatment projects.From the point of view of project risk sharing,this paper analyzes how to solve the risk of policy change between public and private sectors.Taxation plays an important role in the regulation of income.Through the context design and numerical simulation,the paper calculates the effect of different combination schemes of tax policy and preferential policy on the project income in the concession period of BOT model.And this paper also analyzes how to make reasonable adjustments to the project income level in the concession period through the formulation of tax policies,and realize the win-win of the three party interests of social capital,government departments and the public.This paper draws a conclusion that the value-added tax policy of the wastewater treatment business has a negative impact on the income level of the operation of the wastewater treatment BOT project concession period.For the implemented BOT project,there are two measures to solve the risks derived by the tax policy change.They are the concession price adjustment and the concession period extending.At the same time,the reasonable tax policy and preferential tax policy is the important measure to control the project income level.Therefore,the tax authorities should make reasonable tax preferential policies on the basis of full calculation,in line with the concept of win-win,so that tax policy has become an effective means to regulate the benefits of public projects.