| Since the “revenue-sharing-scheme†reformation in 1994, value-added tax(VAT) and business taxes are among the most important turnover taxes in China. The disadvantage of coexistence of VAT and business taxes began to dominate its advantage in the wake of economic growth and globalization. In November of 2011, the ministry of finance and State Administration of Taxation started the VAT reform pilot project in transport industry and modern service sectors in order to reduce the tax burden. On August 1 of 2013, this reform is expanded nationwide.Transport industry is fundamental sector in Chinese economy, which has an important influence on community development. Transport industry provides transportation service for society, and promotes the development of secondary and tertiary industry. Therefore, the VAT reform pilot in transport industry will create a far-reaching change.Currently, the statistic data of pilot sectors have showed that the VAT reform has achieved the aim of structural tax reduction form. This dissertation investigates the impact of VAT reform transport industry of Nanchang. The results show that the VAT reform has reduced the double taxation and the costs of tax collection and management in Nanchang transport industry. In last, this paper provide proposal on improvement of VAT reform. |
