A Study On The Financial Impact And Strategy Of CBR On CB Airport

Replacing business tax with a value-added tax(VAT) is an important measure of China’s fiscal reform. This reform has eliminated the double taxation and achieved the main goal of structural tax reduction,and make the value added tax deduction chain more perfect.Airport which is a part of the transportation industry start reformation from August 2013.After more than two years of implementation, the reform of the airport caused a lot of impact.CB airport is the most important airport in the central area of China.Analysis the impact of replacing business tax with a value-added tax(VAT) on CB airport can provide effective measures for successfully implementing the reform on the private airports in China.This paper is divided into five parts,the first part starting from research status of the replacing business tax with a value-added tax(VAT),explains the scholars mainly focus on the change and increase of the railway, aviation and waterway transport industry in the transportation industry,ignore the impact of the changed to private Airports.The second part introduces the concept of business tax and value added tax and accounting methods of them,and tax burden theory in order to providing theoretical basis for the following research. In the third part, through the field survey,CB airport business income revenues VAT except for the other business income after reform.Due to the characteristics of its tax neutrality,15% of the cost can conduct input tax deduction in CB airport.In the fourth part, analyzes the change of tax burden, profitability and growth ability,and the cash flow and net profit in the CB airport.Because of CB airport increasing the fixed assets investment, greatly improving the proportion of input tax deduction, resulting in business decline the costs and business taxes.Therefore, the tax burden of CB airport has declined in the short term, profitability and growth ability has improved, net cash flow and net profit has risen.The fifth part proposed to improve the financial situation of CB airport from the following aspects in the background of the value-added tax(VAT).First, CB airport management should be timely to organize staff to learn the knowledge, and public the knowledge of the value added tax for each stakeholder.Second, CB airport should outsource non core business,in order to reduce the labor cost of enterprises,increase the proportion of the cost structure.Third, CB airport financial personnel should evaluate tax related risks and train the relevant personnel.If management can effectively control the enterprise’s tax risk.The last,make a reasonable plan for investment of assets, as well as in the choice of the upper reaches of the supplier should be as far as possible to choose a general taxpayer qualified enterprises,so that give full play to the characteristics of the value of tax neutrality.Most of China’s private airports are in a state of loss.Through analyzing the impact of CB airport after a value-added tax(VAT) replacing business tax,that can provide a reference for the same industry, and reduce the tax costs of enterprises, promote the development of civil airports, thus to satisfy the needs of social economic development.