Research On The Influence Of Tax And Fee Reduction Policies On The Financial Performance Of Manufacturing Enterprises

As our national economy and social development continue to make new achievements,the new round of tax and fee reduction policies after the replacement of business tax with VAT have been more aggressive in reducing tax policies for manufacturing enterprises.In terms of VAT reduction,it mainly involves the reduction of statutory tax rate,additional deductions,tax rebates and so on.In terms of enterprise income tax,it provides preferential tax rates and additional deductions for research and development expenses.In 2022,the manufacturing industry will receive nearly 1.5 trillion yuan in new tax and fee cuts and tax rebates and exemptions,making it the industry that benefits the most from the policy of tax and fee cuts.This paper takes Orient Carbon Company as an example to study the impact of tax and fee reduction policies on its financial performance.Firstly,this paper obtains the tax reduction and fee reduction policies enjoyed by Dongfang Carbon Company from 2017 to 2022 through field research and visits.Based on the existing financial data of the company,this paper calculates the amount of tax reduction or suspension,and finds that the total amount of tax reduction or suspension of the company is about45 million yuan.Secondly,the impact mechanism of tax and fee reduction is analyzed,and the transmission mechanism of tax and fee reduction on income,cost and cash flow is studied respectively.Again,the financial performance before and after tax and fee reduction is analyzed,and the performance of Dongfang Carbon Company in four aspects of debt paying ability,profitability,operating ability and development ability is studied.At the same time,in order to avoid the disadvantages of the traditional financial analysis method that only focuses on short-term operating profits,this paper adopts the economic added value method for research.It is concluded that tax reduction and fee reduction have a positive incentive effect on the financial performance of Dongfang Carbon Company to some extent.However,in the research process,it is found that although tax and fee reduction can alleviate the operating pressure of enterprises to a certain extent,there are still problems such as slow turnover of assets,low operating efficiency,unreasonable capital structure and lack of value innovation.In view of the problems in the process of tax reduction and fee reduction of Dongfang Carbon Company,this paper puts forward relevant countermeasures and suggestions: efficient allocation of resources,improvement of operating efficiency,optimization of capital structure,avoidance of financial risks,the use of tax policies,strengthening enterprise innovation.On the basis of making full use of tax policies,Orient Carbon Company can make full use of the resource advantages brought by tax reduction and fee reduction,give full play to its potential and strive to reach a new level of development.The innovation point of this paper is to adopt the case study method,select a traditional manufacturing enterprise as the case study object,analyze the tax and social security fee exemption or suspension that it actually enjoyed from 2017 to 2022,and study the impact of tax reduction and fee reduction policy on the financial performance of the manufacturing industry from a micro perspective.