Research On The Impact Of Tax Preferential Policies On The Development Of China’s New Energy Vehicle Industry

With the rapid development of social economy,the automobile industry has leapt into a pillar industry in China,which plays a crucial role in boosting the national economy.However,traditional fuel vehicles have a large demand for energy,and as China’s car ownership continues to rise,they will face energy crises and environmental issues,which are incompatible with China’s strategic objectives of sustainable development;At the same time,the current situation of international political instability has led to large fluctuations in crude oil prices,prone to economic risks and other issues.Moreover,at present,China’s new energy vehicle industry has not developed for a long time,and the industrial foundation is relatively weak.Therefore,it is necessary for the country to introduce tax preferential policies conducive to its development.Our government actively promotes tax incentives as a macro control tool to promote the rapid development of the new energy vehicle industry.The implementation of tax preferential policies can alleviate the operational pressure of enterprises by transferring tax funds,encourage enterprise research and innovation,and achieve optimal allocation of resources and stable development of the industry.However,with the changes in social forms and industrial upgrading,the original preferential tax policies cannot accurately adapt to the development of the industry,and there are problems such as delays.However,the favorable policies for new energy vehicles have not changed,and the implementation time of the policy of exemption from new energy vehicle purchase tax is also being further extended.This article discusses the role of tax incentives in promoting the development of China’s new energy vehicle industry based on the actual situation and tax incentives,and proposes suggestions for improving and improving tax incentives based on empirical analysis results.It is mainly divided into five parts.The first part is an introduction,which first describes the significance and background of the topic,summarizes and briefly comments on relevant literature at home and abroad,and discusses the main research content and methods,innovation points,and shortcomings.The second part is to clarify the relevant concepts of new energy vehicles and tax effect theory,as well as the mechanism analysis of the effects of tax preferential policies.The third part analyzes the current situation of the development of new energy vehicles,classifies the current tax policies for new energy vehicles,including income tax and turnover tax,summarizes the relevant tax preferential policies implemented in various aspects of the new energy vehicle industry in China,and describes them in accordance with the above two tax reduction methods.Secondly,54 listed companies were selected and data from 2013-2021 were collated to analyze the sales profit margin,tax burden ratio,turnover tax burden,corporate income tax burden,and R&D investment of new energy vehicle enterprises in the upstream,midstream,and downstream industries in different years.A simple analysis of the changes in each year was also conducted.The fourth part makes assumptions and empirically analyzes the impact of tax incentives on China’s innovation and profitability based on the assumptions.Through regression results,the following conclusions are drawn: Reducing the tax burden of turnover tax in China’s current tax policies has a significant promoting effect on the innovation and profitability of new energy vehicle enterprises,and reducing the tax burden of income tax also has a significant promoting effect on improving innovation capabilities,However,there is a positive correlation between income tax burden and profitability,rejecting the original assumption.Finally,based on the empirical analysis results,the shortcomings of various aspects of the current industry are discussed.The conclusions drawn from the empirical analysis are of great significance for adjusting the preferential tax policies for new energy vehicles.Based on the conclusions,targeted tax policy recommendations are proposed for the new energy vehicle industry.