The Impact Of China’s Fiscal And Tax Policies On The Financial Performance Of BYD New Energy Vehicle Enterprises

In recent years,the problems of energy shortage and environmental pollution are no longer purely national issues.This has risen to global issues.Therefore,China’s national policy in the automobile sector has continued to follow up.Changes from National V to National V have caused certain restrictions on fuel vehicles,while new energy vehicles have made rapid progress with the strong support of the national fiscal and tax policies.However,after seven years of development,China has begun to continuously raise the technical threshold for financial subsidies for new energy vehicles,and has stepped up its fiscal and tax policies.Until 2022,the subsidies will be completely withdrawn.Therefore,it is very important to study whether the changes in government fiscal and tax policies will play a positive role in regulating the financial performance of new energy automobile companies,and how new energy automobile companies respond to changes in fiscal and tax policies.This article will focus on the performance impact of new energy automobile companies BYD under government fiscal policy,analyze the impact of government subsidies on corporate debt repayment ability,operating capacity,and profitability,and further reveal the impact of government fiscal and tax policies on the financial performance of sample enterprises.An empirical analysis is made on whether government fiscal and taxation policies play a positive regulating role in BYD financial performance and make relevant suggestions.Through research,this paper finds that China’s fiscal and taxation policies have a positive regulating effect on BYD’s profitability,operating capability,and development capability,but have limited effects on debt serviceability.Therefore,BYD companies should seize the opportunity,make reasonable use of national policy support,comply with the development situation of the automotive industry and national policy guidance,and expand new energy vehicle business in a timely manner according to their own conditions.At the same time,as subsidies are about to withdraw from the stage in 2022,BYD companies must not rely too much on policies.They should fully realize that patents and technologies are one of the core competitiveness of enterprises,and they are of vital importance to the sustainable and healthy development of enterprises.