An Empirical Research On The Impacts Of Turning Business Tax Into Value-Added Tax On Listed Enterprises In Transportation Industry

Based on the background of the Turning Business Tax and Value-Added Tax exist at the same time, there are several major problems such as double taxation, unfair tax burden and high Tax Misery Index, resulting in hindering the development of tertiary industry and obstructing further improvement of China’s tax system. In order to implement structural tax reduction, to co-ordinate the interest of the overall state,society,enterprise and the individual, The “Pilot Proposals for the Change from Business Tax to Value-Added Tax”(use “BT-VAT” for the following), put into trial use in shanghai and expanded nationwide on August 2013.Transportation industry has a high reliance on capital and technology, the money spent on communication tools accounted for a large proportion of production cost. The implement of BT-VAT has an directly influence on tax burden and cash flow of the company, thus affecting the alteration of technological transformation and update of transportation equipment and fixed assets, thus,ultimately impacting on the company’s financial performance.In the view of the theory of tax neutrality and tax system optimization, this article elaborated on the necessity for reform and optimization of tax system. Using the financial data of listed Companies in Transportation Industry from 2013 to 2014, this study purposes to analysis the impact of macroeconomic policy reform to the tax burden and cash flow of the enterprise, and examine the positive effect of the law on financial performance of the enterprises. On this basis, providing recommendations for solving tax conflicts, consummating tax system, building a interest allocation plan and promoting development of the tertiary industry.By the integrated methods of qualitative analysis and quantitative research, this paper finds out the followings:Firstly, the implementation of the BT-VAT can increase the tax burden of enterprises and put down the financial performance.Secondly, the more cost of raw material fully deductible, the greater the level of financial performance improved margin.However, deductible effects of fixed assets was not associated with corporate financial performance. Thirdly, Thirdly, it finds that compared with the low degree of market areas,the promulgation of the policy have a greater adverse impact on the high degree of market areas. with respect to the effect of property right attribute, it didn’t works.To a certain degree, it explains that the enforcement of BT-VAT result in the “structural tax increment” and decrease its financial performance. Sound tax system and rational allocation of total social capital,requires not only the support of the macro-control efforts,but also combination with the reform of the internal tax risk regulation system and capital project of enterprises. Based on it,some corresponding countermeasures and suggestions are put forwarded.