| In 2016,the Central Committee of the Communist Party of China and the State Council issued the "Healthy China 2030" Planning Outline.And then clearly proposed to incorporate the "Implementation of Healthy China Strategy" into the overall national development strategy.In 2021,President Xi Jinping re-emphasized that safeguarding the health of the people should be a strategic priority for development.The pharmaceutical manufacturing industry is a key industry in promoting "Healthy China2030",and all sectors of society are actively responding to this call.The VAT reform is also escorting the development of the pharmaceutical manufacturing industry.China has been promoting the VAT reform since 1994,aiming to reduce the pressure on VAT in all industries and create conditions for the healthy development of the pharmaceutical manufacturing industry.This paper takes Renfu,a pharmaceutical manufacturing enterprise in Hubei Province,as a case,starting from the impact of previous VAT reforms on enterprise tax burden,and studies the impact of VAT burden on enterprise value at the microscopic level,which can better test the effect of VAT reform,to provide suggestions for further reform of VAT and improvement of enterprise value.This paper starts from the mechanism of VAT reform to reduce VAT burden,reducing the tax burden will saving the cash outflow of enterprises,and the tax burden will also affect the investment of enterprises thr ough cash flow,and ultimately affect the value of enterprises.Taking Renfu as a case,study the impact of VAT burden on enterprise value.At the end of the article,it puts forward Renfu’s appeal to tax policy and suggestions for improving enterprise val ue at the enterprise level.After research,the following conclusions were drawn: First,calculate the VAT paid by Renfu every year through the Education Surtax.It can be seen that the VAT reform has reduced the VAT burden of Renfu,this lays the groundwork for studying the impact of VAT on enterprise value.Second,based on the cash flow hypothesis and the new investment hypothesis to study the impact of VAT on cash flow and investment.It is found that after the reduction of the VAT burden,the difference between the cash inflow and outflow of Renfu’s operating activities gradually increases.The impact of VAT burden on investment is as follows: after the VAT transition,Renfu invested a lot in fixed assets.This can also counteract the current VAT burden.However,the positive impact of tax reduction on external investment has not been reflected;Third,the article finally settled on the enterprise value.The study found that the increase of Renfu’s cash flow has a significant promoti ng effect on the change of enterprise value.And Renfu’s fixed asset investment promoted the transformation and upgrading of enterprises,but due to poor internal investment management,the promotion of external investment on enterprise value was not significant.In addition,the article analyzes the impact of VAT burden on enterprise value by price effect and tax burden effect.The analysis shows that these two effects have obvious impact on Renfu.However,it was found that Renfu had problems such as high capital cost of mergers,which led to the positive effect of the VAT reform not being reflected in some years.Fourth,put forward Renfu’s appeal to the VAT reform policy: degenerate tax rates to achieve tax neutrality,improve the VAT deduction chain,solve the problem that human resource costs and loan interest cannot be deducted from input tax.At the institutional level,it proposes a way to realize the optimal tax system : increase the proportion of income tax.At the enterprise level,Renfu should optimize its foreign investment management,improve its capital structure,reduce financing costs,accelerate the implementation of the nuclearization strategy and maximize its Enterprise Value. |
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