The Impact Of Abolishing The 13% VAT Tax Rate Policy On Enterprise Value

With the implementation of the comprehensive "replace business tax with value-added tax" policy,the VAT tax rate has increased by 11% and 6%,and a collection rate has increased by 5%.Although the "replace business tax with value-added tax" policy has perfected the VAT deduction chain,too many grades of VAT tax rate will affect the neutral role of VAT tax,resulting in serious problems in VAT input tax deduction,tax payment and tax burden transfer.Therefore,on April 19,2017,the State Council promulgated a simplified policy of VAT tax rate,abolishing the 13% VAT tax rate,and replacing the related products that used to apply the 13% VAT tax rate with the 11% VAT tax rate.However,the effect of the implementation of the policy remains to be tested by empirical evidence.This paper theoretically analyses the influence path of reducing VAT tax rate on enterprise value,and points out that the only determinant of enterprise value is enterprise investment,and fixed assets investment and equity investment constitute the main part of enterprise investment.By comparing the new investment scale of enterprises directly affected by the reduced VAT tax rate policy with that of enterprises not affected by the policy before and after the implementation of the policy,we can judge the effect of the policy implementation.On the basis of the overall comparative analysis,we can analyze the impact of the policy in different property rights,different economic regions and different industries.Based on the above research,some suggestions are given.The empirical results show that: firstly,on the whole,the policy of value-added tax rate simplification promotes the investment of fixed assets,but the effect of equity assets investment is not significant.Secondly,from the nature of property rights,there is no significant difference in the effect of the reduced VAT tax rate policy on enterprises with different property rights,which shows that the effect of policy implementation is not affected by the nature of property rights.Thirdly,from the economic region point of view,the policy promotes the fixed assets investment of enterprises in the eastern region,but the effect is not significant for other regions,indicating that the policy effect is related to the degree of economic development.Fourthly,from the perspective of industry,the effect of policy on different industries is not significantly different,indicating that the effect of policy implementation is not affected by industry.The above analysis shows that the simplified policy of VAT tax rate has the function of promoting enterprise investment and enhancing enterprise value,but the effect varies greatly among different economic regions.Therefore,the government should take regional differences into account when further promoting the reform of VAT policy and implement the reform policy pertinently.