The Impact Of "BT To VAT" On Transportation Companies' Tax Burden And Performance

For a long time,our country has been implementing the tax system that combined value-added tax with business tax.With the improvement of market economy,the system gradually shows its irrationality and defect,hindering the transformation of China's economic structure.Multiple taxes caused by the old tax system,not only burdened the tax pressure of enterprises,but also leaded a variety of problems.Take some examples,the tax system hindered the development of the third industry of our country,lowered the export competitiveness of products and leaded to tax collection loopholes and so on.In order to further improve the tax system.The transformation that replaces business tax with value-added tax is firstly carried on Shanghai transportation and some modern service industries since January 1,2012.And gradually,all sectors are included in the scope of reform,business tax(BT)is totally being replaced by value-added tax(VAT).Transportation,including land transportation,water transport,air transport and pipeline transportation,is the basic sector of China's national economy,which plays an important role in the national economy.Since 2012,it has been 4 years that transportation industry implemented "BT replaced with VAT" reform.Whether it works on reducing the tax burden of enterprises,and whether it has positive impact on the performance of enterprises is a recent hot topic.On the basis of some relevant literatures,in this paper,firstly,the researcher analyzes the influence of "business tax replaced with value-added tax" on enterprise tax burden and performance from the theoretical point of view.Based on the data of transportation companies listed in 2009-2013 financial statements in Shanghai and Shenzhen,the researcher compares the changes of tax burden of enterprise and company performance during the short time before and after reformation and draw a preliminary conclusion of empirical test.Secondly,this paper takes Shanghai transportation industry quoted company as the sample,on the basis of the financial data during 2009 to 2015.The researcher adopts panel data multivariate regression model to compare changes of corporate tax burden and performance by adding to dummy variables which represents reformation."Replacingbusiness tax with value-added tax" does not produce dramatic impact on company performance at the short time.However,with the reformation continuing,to some extent,it improves the performance of enterprises.Finally,based on the conclusion mentioned above,this paper proposes policy suggestions and coping strategies,from the view of the government and the enterprise,to promote "business tax replaced by value added tax"reformation being better executed and reform effect better works.There are two innovations in this paper.The first one is that the researcher applies double difference model and panel data multivariate regression model to measure changes of tax burden and changes of performance both in the short time and long time.So it can relative entirely reflect the trend of fluctuation.The second is that this paper deletes some companies whose income mainly from road toll and storage fee,making the sample more clearly,drawing a more realistic conclusion.