Transformation From Business Tax To Value-added Tax’s Tax Burden Implications With Shanghai City As An Example

Transformation from business tax to value-added tax is an important content of reform of taxation as well as a major reform of tax system after the transformation-oriented reform of VAT, whose essence is to enlarge the range of levying VAT and bring the original industries who pay business tax under the range of levying VAT. The implementation of the transformation from business tax to value-added tax policy is helpful to reduce the tax burden of enterprises and advantageous to the optimization and upgrading of industrial structure, which will promote the development of transportation industry and part of modern service industry. However, as this reform is involved in central and local income distribution as well as other difficult problems, so the reform cannot be completed instantly. The reform process will be quite complicated, so it is necessary for us to develop the pilots of the transformation from business tax to value-added tax and provide experience for the full implement of the reform by pre-pilots. On January 1, 2012, transportation industry and part of modern service industry in Shanghai began to carry out the pilot of the transformation from business tax to value-added tax, which opened the prelude of the reform.Transformation from business tax to value-added tax pilot is the early exploration to realize comprehensively implement VAT reform, so the study of the pilot areas namely Shanghai’s policy implementation effect has great theoretical significance and practical significance. This article designs the evaluation index system of transformation from business tax to value-added tax’s tax burden implications. On this basis, by comparing the data, which is predicted by BP neural network model without the implementation of transformation from business tax to value-added tax in Shanghai in 2012, with the data after the implementation of transformation from business tax to value-added tax in Shanghai in 2012, this article explores the effects of the transformation from business tax to value-added tax to the transportation industry and part of modern service industry in Shanghai and puts forward suggestions on further policy implementation.In this paper, there is a total of seven parts. The first part: introduction. This part mainly introduces selected topic background and research significance of this article as well as other contents. The second part: the research summary of the transformation from business tax to value-added tax policy’ tax burden implications.This chapter reviews mainly from three aspects: the policy, the effect evaluation system and the empirical analysis of the literature. The third part: the theoretical basisof transformation from business tax to value-added tax. This part discusses the necessity to implement the transformation from business tax to value-added tax policy from three aspects: tax neutral theory, commodity turnover tax theory, tax revenue’s macroeconomic regulation theory. The fourth part: the evaluation index design of transformation from business tax to value-added tax’s tax burden implications. The index system consists of macro and micro indicators, macro indicators design proceed from the economic environment of tax income in Shanghai, while the microeconomic indicators design proceed from micro main body namely enterprise, which is also the carrier of tax. Macroscopic evaluation index includes three first-level indicators,which are tax amount and structure, tax and economic coordination, economic structure and development, and 12 secondary indicators, which are tax rate, total tax burden and elasticity of consumption economy and so on. Microscopic evaluation indexes includes total derivation of tax and structure, tax sources development two first-level index namely and growth rate of value added tax, turnover tax burden and so on seven secondary indicators. The fifth part: the establishment of nerve network model of transformation from business tax to value-added tax’s tax burden implications. This part firstly introduces the basic principle of neural network and the advantage of the use of neural network to solve practical problems, then design neural network model to determine the model parameters.The sixth part: the evaluation index application of transformation from business tax to value-added tax’s tax burden implications. This part is the focus of this paper.This part discusses the use of neural network model from macro and micro two aspects. By analyzing the predicted results of the macroscopic indicators, we found that the Transformation from business tax to value-added tax policy optimizes the tax system, stimulates the consumption and stimulates the enthusiasm of people, the effect of structural tax reductions and fair tax burden is good. The implementation effect of the transformation from business tax to value-added tax policy pilot achieves the goal of the reform. By analyzing the predicted results of the microscopic indicators, we found that in addition to the turnover tax increase, the tax sources development of the enterprise have good development trend, the future trend of the development is optimistic. The seventh part: conclusion and suggestion. This part summarizes the whole paper and puts forward some suggestions on the basis of the research conclusion, and expounds the innovation points of the research and outlook.