The Influence Of "Replace Business Tax With Value-added Tax" On The Work-division Of Manufacturing Industry

The reform to replace business tax with value-added tax is a major decision for China to implement supply-side structural reform.Both services and manufacturing are deeply affected by the policy.Before this,the business tax that manufacturers pay for their services is an internal tax,which increases the cost of trading in the manufacturing industry,and the manufacturing industry tends to be self-sufficient.After the business tax is converted to VAT,VAT is a tax that can be deducted.The new tax reform reduces the tax burden of enterprises and avoids duplicate taxation,thus freeing up tax space for the development of manufacturing enterprises.For manufacturing enterprises,the manufacturing business is the main business and is the core business that reflects the competitiveness and overall level of a manufacturing enterprise.Then,after the implementation of the policy,manufacturing enterprises based on the principle of maximizing profit or cost minimization can outsource part of the service to other companies,so as to focus on the main business of production and achieve the effect of division of labor.Another situation is that the service business of manufacturing enterprises has reached a certain level,so manufacturing enterprises expand their business scope and increase the business operation related to the reform.Of course,it is not a representation of the division of labor in the manufacturing enterprises to simply make decisions that increase the scope of business.The work division of manufacturing enterprises can promote the positive interaction between manufacturing and services,raise the level of specialization in manufacturing and service industries,and realize industrial upgrading of the entire industry in our country.Manufacturing has played an important role in China’s economic development.However,over the past decade,it has been in a state of overcapacity and in urgent need of upgrading.Jiangsu’s manufacturing industry ranks in the forefront of the country,and it also faces problems such as unbalanced regional development and insufficient innovation power.In order to implement the "made in China 2025" and accelerate the deepening reform of enterprises,from "made in China" to "intelligent manufacturing in China",Jiangsu province should play a leading role in adjusting the industrial structure.Then,in the context of the implementation of the policy in Jiangsu Province for the past five years,has the policy promoted the division of labor in manufacturing enterprises in Jiangsu Province?Based on the above background analysis,this paper starts from the perspective of division,and conducts research on the overall effect of the new tax reform on the division of manufacturing enterprises in Jiangsu province as well as the expansion of business scope.This paper uses the data of Jiangsu A-share manufacturing enterprises from 2011 to 2016 under the industry classification of CSRC(2012).First of all,this paper adopts the DID model to study the influence of the policy on the division in manufacturing enterprises in Jiangsu province.Secondly,select Suzhou New Sea Union Telecom Technology Co.,Ltd.,a manufacturing company in Jiangsu province,for detailed case analysis.The results show that the new tax reform does not significantly promote the overall division effect of manufacturing enterprises in Jiangsu province.But,it significantly promotes the expansion of the business scope of Jiangsu manufacturing enterprises.In real life,there are many manufacturing enterprises in Jiangsu province,which is similar to Suzhou New Sea Union Telecom Technology Co.,Ltd...With the advantage of enterprises,it can quickly integrate the industry.On the one hand,it increases service outsourcing;On the other hand,it expands the scope of business,and even separates the related service business to achieve the effect of division.This is worth learning from other companies.In short,there is still much room for the division in the manufacturing enterprises of Jiangsu province to be promoted by the new tax reform,and both the government and the manufacturing industry should pay more attention to the effects of the policy.