Does The “Business Tax To VAT” Increase The Total Factor Productivity Of The Information Technology Service Industry?

The change of business tax to value-added tax(referred to as business tax to VAT)is another major change in the fiscal and taxation system since the reform of the tax-sharing system in 1994.On January 1,2012,“business tax to VAT” took the lead in piloting the “1+6” industry in Shanghai(transportation industry and some modern service industries).Among them,six of the modern service industries included information technology service industry.Subsequently,it gradually promoted and experienced some industries in some regions,some industries in the whole country,and all industries in the whole country.Until May 1,2016,China launched a comprehensive reform of “business tax to VAT” across the country,and the business tax completely withdrew from the historical stage.The biggest advantage of “business tax to VAT” is that it solves the drawbacks of repeated taxation,non-deductible tax,and non-refundable tax on business tax,which leads to the tax burden of the enterprise.It realizes the tax-neutral purpose of “VAT taxation and deduction”.Can effectively reduce corporate tax burden.The “business tax to VAT” has realized the full coverage of goods and services by value-added tax,improved and extended the chain of value-added tax for the second and third industries,promoted the integration of the secondary and tertiary industries,promoted the social division of labor,and strongly supported the service industry.It is the development of high-end service industries such as technology.The information technology service industry is a basic,strategic and leading industry that is related to the overall development of the national economy and society.It plays an important role in supporting and leading the economic and social development.It develops and enhances the information technology service industry to transform the economic development mode and industry in China.Structural adjustment has an important driving role.The first batch of “business tax to VAT” put the information technology service industry into the scope of the pilot,and solved the problem of repeated taxation in the information technology service industry,which is bound to have a certain impact on the operational efficiency of the information technology service industry.In order to study in depth whether the "business tax to VAT" will drive China's industrial transformation and upgrading,this paper introduces the "Total Factor Productivity" to describe the production efficiency of the information technology service industry.The theoretical analysis and the empirical test combine to study the impact of the "business tax to VAT" on the total factor productivity of the information technology service industry,and evaluate the implementation effect of the "business tax to VAT".It not only contributes to the future development of the information technology service industry,but also has important reference significance for the government to further improve the policy in the future and for the enterprise to make good use of the “business tax to VAT”.First of all,based on the background of the reform of the “business tax to VAT” policy,this paper summarizes the research results and shortcomings of the predecessors by combing the relevant literature on the definition of the total factor productivity and its importance and the factors affecting the total factor productivity.Secondly,it briefly introduces the progress of “business tax to VAT” from the pilot of some industries to the full implementation.From the theoretical point of view,it discusses three aspects of the impact of "business tax to VAT" on the level of total factor productivity,based on this,the hypothesis of the empirical part is proposed.The data of 66 A-share information technology service industries and 75 manufacturing listed companies were collected and screened,and the total factor productivity of these 141 sample enterprises was calculated by LP method.In the empirical stage,a DID was introduced to set the information technology service industry as a processing group,and the manufacturing industry was set as a control group.The sample interval is 2010,2011(before the “business tax to VAT”),2014,2015(after “business tax to VAT”),and several related control variables are added,to verify the policy effect of “business tax to VAT” on the total factor productivity of information technology service industry.In order to avoid the contingency of the data and verify the rationality and accuracy of the model,this paper has adopted three methods to reduce the sample size,reduce the sample age and placebo test.Then,it is concluded that “business tax to VAT” has increased the total factor productivity of the information technology service industry to a certain extent,but there is still room for further improvement.Finally,based on the research conclusions,this paper proposes the improvement of VAT policy from the government level,and how to make full use of the "business tax to VAT" from the enterprise level,to fully improve the total factor productivity of enterprises,promote industrial transformation and upgrading,and accelerate the transformation of Chinese economic development mode.