Analysis Of The Impact Of The Policy That Business Tax Replaced By VAT On Enterprise Investment

Shanghai implemented the policy of replacing the business tax(BT)with VAT in "1+6" industries in 2012.The reform broke the turnover tax system that consisted of the business tax and the value-added tax.The business tax has been adapted to social development level and tax management capacity in a certain historical period.However,with the improvement of the tax management capacity,the drawback of business tax has emerged.The implementation of the reform eliminates the institutional tax barriers faced by Chinese service industry and balances the tax burden among various industries.Expect that,the reform can improve the efficiency of resource allocation,stimulate corporate investment,and adjust the investment structure of enterprises.This paper takes the data of 2010-2017 corresponding to the listed companies of the pilot area and the pilot industry in 2012 as the research object.The theoretical analysis part analyzes three aspects of asset relative price,cash flow and financing constraints.It believes that the impact of replacing BT with VAT on the investment of enterprises by increasing the cash flow of enterprises.The empirical analysis part establishes a dual-control fixed-effects model.The fixed-effect model analyzes the investment amount and investment structure of enterprise equipment-type fixed assets,intangible assets,and buildings investment.The analysis verifies that the reform has significantly promoted corporate investment.Due to the characteristics of the industry and the external market environment,the stages of reform have different effects on the investment of different projects.After the empirical analysis of the investment amount and investment structure,it found that the reform has a significant role in promoting corporate investment,both in fixed assets investment and intangible asset investment.In general,the effect of the reform in 2016 is better than that of the reform pilot.In terms of industry,due to the characteristics of the industry and the impact of the development cycle,from the investment amount and the investment structure perspectives,the effect of the two reforms in different industries varies widely.The reform in 2016 has better effect on corporate investment than the reform pilot.