Empirical Research On The Impact Of The Business Tax Reform VAT For Tax Burden Of Transportation Enterprises

To further solve the issues of double taxation on goods and services tax system, theState Council has decided to effect from January1st,2012，the pilot transportation inShanghai and parts of the modern service industry to carry out the business tax levyvalue-added tax (hereinafter referred to as " BT to VAT "). The policy will improve the taxsystem and support the development of modern service industry. The goal of this taxreform is to optimize the tax structure and mitigate the related tax burden and promote theeconomic development pattern and adjustment of economic structure by adopting thepolicy of structural tax reduction. However, whether the implementation of the "BT toVAT" will have an influence on the tax burden and performance of transportationenterprises and how they adapt to it or adjust themselves have been a hot topic recently.Therefore, this thesis takes the listed companies in transportation industry as sampleto study the impact of the "BT to VAT" on transportation industry from the aspects of taxburden and performance on the basis of relevant literatures, researches on the business taxlevy value-added tax, related concepts and tax theory. In the empirical study, this thesiscollects the data of32A-share listed companies in transportation industry in2011and thenanalyses the variation of their tax burden and performance. Simultaneously, this thesisselects13listed companies in pilot transportation in Shanghai for regression analysis oftheir financial data. The aim of this empirical study is to study the impact of the “BT toVAT” on tax burden and the performance of the transportation enterprises. It is found thatthere is a negative correlation between the “BT to VAT” and tax burden because the taxburden is mitigated by the “BT to VAT”, while there is no significance correlation betweenthe “BT to VAT” enterprise performances. Finally, according to the results, this thesis putsforward some corresponding measures and suggestions for the negative effect of the “BTto VAT” on the transportation industry, which can provide certain referential significancefor those business tax and taxable industries without taking tax reform.