Research On The Impact Of VAT Rate Reduction On Food Manufacturing Industry In China

Manufacturing industry is the mainstay of the national economy,and promoting the high-quality development of manufacturing industry is the main direction of promoting economic development.It is generally believed that the heavy tax burden is an important reason why the manufacturing industry is difficult to develop.In order to reduce the tax burden of enterprises,promote the development of the real economy and help the transformation of China's economy,China's value-added tax has undergone three tax rate adjustments after the comprehensive business to value-added tax: in 2017,the tax rate of 13% was abolished and the tax rate for agricultural products was reduced to 11%;in 2018,the 17% and 11% tax rates were reduced by 1percentage point respectively;in 2019,Cut the tax rate from 16% to 13%,from 10%to 9%.The sharp reduction of VAT rate is of great significance to the development of real economy.At the same time,with the continuous promotion of the strategy of building China into a manufacturing power,the advanced manufacturing industry has developed rapidly with its own advantages and the support of national policies.However,as one of the traditional manufacturing industries,the development speed of food manufacturing industry has been slowing down.Due to the state's subsidy policy for agricultural products,there is a tax rate difference between the output tax rate and the input tax rate for food manufacturing.The resulting “high levy and low deduction” has increased the tax burden on food manufacturing.Therefore,whether the VAT rate reduction can reduce the tax burden and realize the transformation of food manufacturing industry is the research center of this paper.First of all,the thesis analyzes the reasons and problems of VAT rate reduction,and expounds the impact of VAT rate reduction on the tax burden and business performance of food manufacturing industry from a theoretical point of view.It is found that the tax burden of food manufacturing industry is reduced after the tax rate is reduced,and the effect of tax reduction is better than other manufacturing industries.The impact of the tax rate reduction on operating performance will show different results depending on the strength of the company 's bargaining power.Secondly,based on the public data of 34 listed companies in the food manufacturing industry,statistical analysis of the changes in tax burden and business performance before and after the tax rate reduction.On this basis,we use empirical research methods to verify the above analysis,and explore other factors that may affect the tax burden and business performance of food manufacturing industry.Among them,The bargaining power of an enterprise will not only affect its business performance,but also affect its tax burden to a certain extent.For food manufacturing enterprises,the stronger the bargaining power of upstream and downstream enterprises,the weaker the bargaining power of enterprises in the supply chain,the more difficult it is for enterprises to transfer their tax burden,and the less the reduction of enterprise tax burden.High operating cost rate can reduce tax burden,but it is not conducive to improve business performance,which warns food manufacturers to control costs in the long run.Inventory turnover has a negative impact on business performance,and the relationship with tax burden is not significant;the size of the company is the opposite.The company's innovation ability failed to pass the significance test,and the influence degree needs to increase the sample size for further research.Finally,the conclusion is drawn that the reduction of VAT rate has achieved the purpose of reducing the burden on the food manufacturing industry,but many efforts are needed to improve the business performance.Based on this,some suggestions are put forward: we should improve the value-added tax system,unify the tax rate of food industry,and give more tax preferences to the food manufacturing industry;we should improve the tax collection and management efficiency of the tax department,and provide better tax services for the taxpayers while ensuring the tax revenue;we should stimulate the innovation vitality of the food manufacturing enterprises.