Analysis And Effect Evaluation Of VAT Reduction Policy For Construction Machinery Manufacturing Industry In Changsha

In response to the complex international economic situation and the slowdown of domestic economic growth,the state has issued a series of VAT tax reduction policies to reduce the tax burden of manufacturing enterprises,vigorously pro mote the transformation and upgrading of manufacturing industry,and ensure the healthy development of manufacturing industry with strong support.According to the statistics of the Ministry of finance,the manufacturing industry and related links account for nearly 70% of the VAT reduction scale.As an important industry in the development of manufacturing industry,construction machinery manufacturing industry has benefited a lot in the implementation of VAT reduction policy.The construction machinery manufacturing industry belongs to the basic industry of our country,and it is also an important subject of the development of manufacturing industry.The development of construction machinery manufacturing industry is conducive to accelerating China’s indus trial development and enhancing China’s national defense strength and comprehensive strength.At the same time,the construction machinery manufacturing industry is also one of the advantageous industries in the economic development of Hunan Province;as a new developing city,the construction machinery manufacturing industry has become the most competitive industry in the economic development of Changsha City.Under the stimulation of VAT tax reduction policy,the production and operation costs of construc tion machinery manufacturing enterprises decreased,and the profit level increased significantly.In 2019,the operating income of construction machinery manufacturing industry in Changsha increased by 10%.Under the background of macro effect of VAT reduc tion,this paper selects the most representative construction machinery manufacturing enterprises in Changsha as the research object,analyzes the VAT reduction policy and evaluates the tax reduction effect of construction machinery manufacturing enterpris es in Changsha.From the two aspects of VAT rate reduction and VAT deduction scope change,this paper studies and evaluates the tax reduction effect of VAT reduction on construction machinery manufacturing enterprises in Changsha by comparing the effects b efore and after the implementation of VAT reduction policies at different stages.Finally,the conclusion is drawn: the reduction of value-added tax rate is conducive to the increase of business income,the improvement of profit level,the decrease of over all tax burden and the decrease of actual value-added tax;the change of VAT deduction scope is specifically for passenger transport service Deduction Policy and real estate Deduction Policy,which reduces the amount of VAT payment and relieves the engineering machinery Under the pressure of cash outflow,the tax reduction effect is remarkable.Based on the evaluation of the effect of VAT reduction policy for construction machinery manufacturing enterprises in Changsha,in order to further show the tax reduction effect of VAT reform,this paper puts forward suggestions and countermeasures from the perspectives of policy and enterprise.On the government side: first,ensure the stability of the value-added tax policy system;second,improve the scientific value-added tax policy system.In terms of enterprises: first,strengthen R & D investment and transform to intelligence;second,make tax planning and reduce tax risk.