The Effect Of "Business Tax Replaced By Value-added Tax" On Industrial Division

"Replacing business tax with value-added tax" was an important reform in the field of fiscal and taxation.The business tax,which was mainly taxed on the tertiary industry,was eventually replaced by value added tax.The reform eliminated the separation between VAT payers and business tax payers in the tax system through penetrating the deduction chain between the secondary and tertiary industries,and strengthened the cooperation between them.Optimizing the industrial division and extending the industrial chain was important policy intention of "replacing business tax with value-added tax".This article takes "the effect of industrial division" as the research perspective,and uses manufacturing and producer services as research objects to explore the policy effect through a combination of theoretical analysis and empirical analysis.In the theoretical part,firstly,reasons are analyzed that the collection of business tax and value-added tax simultaneously restricted the deepening of industrial division;then,the tax neutral theory,transaction cost theory,and core competitiveness theory are referred to explain why the reform can bring the effect;afterwards,two research hypothesis of this article are put forward.The first is that the reform contributes to the specialization in the manufacturing industry,and the second is that the reform increases the operating revenue of the producer service industry.During the pilot period from 2012 to 2015,the reformed industries were mainly producer services.The scope of the reformed industries did not change much and the reform was gradually launched in time and space during this period.A multi-time point differencein-difference model can be used to identify the reform process.Besides,with the purpose of avoiding the impact of the VAT transition in 2009,the paper selects the data of listed companies in the manufacturing and producer service industries from 2010 to 2015,and constructs a multi-point difference model for empirical research.In the empirical part,the combination of "overall regression" and "group regression" helps to reach a more comprehensive conclusion.After empirical analysis,the article draws the following conclusions: First,the degree of integration of manufacturing enterprises has declined after the reform.Second,the level of specialization of manufacturing enterprises in the middle of the industrial chain has increased more significantly.Third,the demand for producer services has increased after the implemention of reform,and the turnover of the producer services companies has improved correspondingly.Forth,the operating income of transportation and logistics auxiliary services has increased significantly due to their strong industrial correlation with manufacturing industries.Research and development,technology and information services also benefit significantly from the reform.Finally,in order to strengthen the division and cooperation between industries,suggestions are mainly made from two perspectives.One is to push forward the reform of value-added tax to better demonstrate the nature of tax neutrality,the other is that government guidance needs to be enhanced in the aspect of promoting interconnection and interaction between secondary and tertiary industries.