Economic Effective Research On The Expanding Reform Of The VAT

The expanding reform of the VAT is a significant structural tax cut reform whichis popularized nationwide at August1,2013. Industries and regions will inevitablyhave a profound impact from this reform. It is significant for economic developmentto correctly understand and grasp the economic effects and influencing factors of theexpanding VAT. This paper conducts a comprehensive analysis of the expandingVAT’s impact on overall economic expansion, revenue system and reforming theindustry which data comes from the transport listed companies. The impact ofexpanding VAT can be reflected from the tax burden of the industry, profits and so on.Analysis results show that the expanding reform of the VAT has obvious influence onall fields of economy. The corporate tax burden increases and reduced andprofitability also ups and downs in transportation. Verified by panel data regression,about50%of the change is due to the impact caused by the tax reform. The stages ofdevelopment, different business models and scale of different companies have variousresponses for this policy. At the end of this paper, the relevant policyrecommendations are put forward according to the results of real-time data.