An Analysis Of The Influence Of "VAT Replacing Business Tax" On Telecommunication Industry

China is in the critical period of economy restructure,where fiscal and taxation policies are vital.A reasonable fiscal and taxation policy is beneficial to corporations,it can help to release tax burdens and promote the development of the third industry.“ VAT replacing business tax” is such a reform that can make deduction chain more perfect,in order to release tax burdens.Telecommunication industry enjoys an important position in national economy,sorts of other industries are connected with it.Thus,taxation reform in telecommunication industry will have a large influence on every corner of national economy.This paper mainly adopts theoretical research combined with case analysis of research methods.Taking the case of China Unicom,analyse the influence of “VAT replacing business tax” reform,based on the real financial data.In the short term,the reform increases tax burdens,meanwhile,cuts the operating income.However,in the long run,the negative impacts of taxation reform will die down as time goes by.The taxation reform will promote telecommunication industry to build a new structure,which is a positive impact.Since the release of “VAT replacing business tax” reform in June,2014,it has been two years.However,tax of the telecommunication industry has increased.This paper analyses the possible reasons behind this phenomenon and raises some solutions to make this tax reform work better.