The Influence And Difference Analysis Of "Business Tax Replaced With VAT Reform" On Business Performance

As a powerful means for a country to implement macro regulation,tax policy has played an important role in transforming economic growth momentum and promoting industrial structure upgrading.The Chinese government has always taken the reducing of corporate tax burden as a major measure to improve corporate performance and foster enterprise growth.Especially in recent years,the policy of slashing tax and fee reduction has been implemented one after another,in order to enable enterprises to really lightweight,effectively reduce their tax burden,improve their business performance,and thus drive the vitality of the whole economic market.During the “13th Five-Year Plan” period,The pilot work of “Business Tax Replaced with VAT Reform” is an important part of the reform of China's taxation system.On January 1,2012,the “Business Tax Replaced with VAT Reform” took the lead in piloting the Shanghai transportation industry and some modern service industries(the “1+6” industry),and gradually expanded the scope of promotion until May 1,2016.Intuitively speaking,“Business Tax Replaced with VAT Reform”effectively solved the problem of double taxation in the process of collection of business tax,greatly reduced the tax burden of enterprises and released the vitality of enterprises.Then,at a deeper level,on the basis of reducing corporate tax burden,does the “Business Tax Replaced with VAT Reform” promote the improvement of production efficiency and significantly improve business performance? This paper systematically examines this issue,which is of great practical significance for assessing the policy effect of tax reduction incentives on micro-enterprises and the structural tax reductions to stimulate market vitality and promote industrial structure upgrading.This paper select the data of 2010-2015 A-share listed companies in China's Shanghai and Shenzhen stock markets as a research sample.The “Business Tax Replaced with VAT Reform” as the first pilot was implemented in Shanghai “1+6”industry on January 1,2012,then,gradually expanded to the “1+6” industry in other provinces and cities,this article uses the “1+6” industry enterprises as the experimental group,and the listed enterprises that do not involve “Business Tax Replaced with VAT Reform” as the control group.The multi-point difference-in-difference method comprehensively evaluates the impact of the taxreduction policy represented by “Business Tax Replaced with VAT Reform” on business performance.The study concluded that “Business Tax Replaced with VAT Reform” not only significantly improved the profitability of the company,increased the profit rate of the enterprise,but also improved the overall performance of the company by increasing the operating income of the enterprise,reducing the operating cost and production cost of the enterprise,and improving the production efficiency.Further,the heterogeneity analysis based on the industry characteristics shows that compared with the transportation enterprises,the implementation of the “Business Tax Replaced with VAT Reform” policy has more positive effects on some modern service enterprises.This paper provides an effective empirical evidence for the adjustment and supplement of the government's follow-up tax policy.