Empirical Research On Tax Burden Of Construction Industry Based On VAT Reform

Since the pilot program of replacing the business tax with a value-added tax was comprehensively launched on May 1,2016,the CPC central committee and the state council have made many significant measures on tax reform under the new normal of China’s economic development,which is of great significance for facilitating supply-side structural reform and further reducing the burden on taxpayers.The construction industry occupies a very important position in the national economy.Tax burden has always been the core of tax policy,and the change of tax burden of construction industry after the implementation of the new tax policy is also of great concern.It is worth exploring whether the construction taxpayers have enjoyed the reform dividend.In the early stage of implementing the policy,most experts predicted that the tax burden of the construction industry would rise from high to low,and eventually maintain a relatively stable state,but it is not the case.By analyzing the tax-related data of a-share listed companies in the construction industry and construction enterprises in X city,combined with field visits,this paper further explores the common reasons for the rise in tax burden and puts forward relevant suggestions on basis.Based on the policy analysis,this paper conducts an empirical study on the tax burden increase or decrease of a-share listed companies and X city enterprises after replacing the business tax with a value-added tax and reduction of rates.By adopting the methods of literature research,comparative research and case study,through collecting the data of their tax returns and financial statements,the changes of enterprises’ VAT burden,enterprise income tax and comprehensive tax burden are analyzed.Through the comparison,it is concluded that after replacing the business tax with a value-added tax,the VAT burden of construction taxpayers is obviously reduced,while the comprehensive tax burden is reduced.After the implementation of the tax rate reduction policy,the value added tax burden and comprehensive tax burden of the construction taxpayers decreased obviously.After that,the typical representative enterprises in X city were selected for in-depth analysis.This paper makes a comprehensive analysis of the causes of the rise of enterprise tax burden from the aspects of insufficient input deduction,insufficient enterprises themselves,the existence of the affiliated mode and the lack of tax collection and management by tax authorities.Targeted from the policy level,enterprise level and tax authorities to reduce the tax burden of construction enterprises path choice,promote the benign development of construction enterprises.