Study Of VAT Reform From BT Within The Transport Enterprise In Nanjing

The Third Plenary Session of the 18th CPC Central Committee started a new round of deepening reform where tax reform is highlighted and given high expectations. Scientific fiscal and tax system is the system guarantee to optimize resource allocation, to safeguard market unity, to promote social justice and to achieve long-term stability. Recent years our tax reform has witnessed the general change in content adjustments within indirect taxes such as transformation from business tax to value-added tax.Transportation is inseparable in the various economic behavior of the market economy. All aspects of the economic chain are closely related. In the first round of implementation of the reform, transport industry is chosen considering the requirements to implement tax fairness, improve circulation tax system and to regulate corporate accounting, but also the reality need to put forward economic restructuring. In this paper, the transport industry in Nanjing is studied, which is both representative and practical.The paper researches the problems of the VAT reform program in the existing transport industry, combing current academic and practical administration theories and ideas. The chapter establishes and measures the VAT burden model and gets breakeven point of tax burden. Then conduct a case study of the VAT reform program within the transport industry in Nanjing. The chapter selects typical enterprises in the road passenger transport, road freight, sea transport and air transport and makes quantitative analysis, reflecting the differences in trends in different industries.The results showed that:(l)After the reform, Nanjing transportation company’s overall tax burden has declined, but the decline narrowed down;(2)Excluding the erratic behavior of purchased fixed assets, Nanjing road passenger transport and road freight companies theoretical tax burden will increase by 23% and 33% respectively, the theoretical tax burden on air transport enterprises remain unchanged, waterway transport enterprises theoretical tax burden fell 14 %;(3)Consider purchased fixed assets input tax factors, actual tax Nanjing road passenger transport fell 7.77 percent, the actual tax burden road freight companies basically unchanged, waterway transport enterprises dropped 18.24% effective tax rate, the actual tax burden of air transport enterprises decreased 82%.At last,the paper proposes policy recommendations to improve the reform.We want to make our efforts to the ongoing pilot VAT reform program.