Research On The Impact Of Rate Reduction On China’s Automobile Manufacturing Industry

The manufacturing sector is the mainstay of the real economy.It is the key to achieving long-term and stable economic development and the driving force for highquality economic growth in China.With the growing development of China’s economy and the continuous improvement of people’s living quality,the operating income of China’s automobile manufacturing industry will rank second among nearly 40 industrial industries in 2020.Automobile manufacturing has become an important pillar industry of China’s national economy.In order to reduce the tax burden,release the development potential of the automobile manufacturing industry,promote the development of the real economy and facilitate China’s economic transformation,China’s value-added tax rate has been adjusted three times: on July 1,2017,the 13% tax rate was directly cancelled,and tax on agricultural products to 11%;Starting May 1,2018,the 17 percent and 11 percent tax rates will be reduced by 1 percentage point each;On April 1,2019,the tax rate for manufacturing and other industries will be reduced from 16% to 13%,and the tax rate for transportation and other industries will be reduced from 10% to9%.Study on the effect of VAT rate reduction on automobile manufacturing industry can not only verify the effectiveness of tax rate reduction policy,but also let automobile manufacturing enterprises understand their profit degree in the policy adjustmentAlong the theory introduced in this paper,policy comb,modeling,data analysis,policy recommendations of logical clues,first introduced the car manufacturing and operating performance of relevant concepts,theoretical basis,this paper introduces the auto industry how to classification and auto manufacturing tax changes in the course,what kind of measure is adopted in this paper illustrates the enterprise business performance indicators.Secondly,based on the public financial data of 103 A-share listed automobile manufacturing companies,the changes of corporate tax burden and business performance before and after tax rate reduction are analyzed statistically.On this basis,a multiple regression model is established to verify the above analysis by using empirical research methods.At the same time,other factors that affect the tax burden and business performance of automobile manufacturing industry are discussed.It is found that the impact of tax rate reduction on business performance is affected by the different bargaining power of enterprises.The stronger the bargaining power of the upstream and downstream enterprises is,the weaker the bargaining power of the enterprises in the industrial chain is,the more difficult the transfer of corporate tax burden is,and the reduction range of corporate tax burden is small.High operating cost ratio can reduce the tax burden,but it is not conducive to the improvement of business performance,which reminds automobile manufacturers to control costs in the long run.Asset-liability ratio has a negative impact on corporate tax burden and business performance,while corporate size has a positive impact on corporate tax burden and business performance.Finally,this paper on the basis of empirical research,from the angles of enterprise and government put forward the reasonable tax planning,enhance the vitality of enterprise bargaining power,the enterprise innovation,multimode in the face of the policy adjustment,further adjust the VAT rate,improving the efficiency of tax collection and administration and strengthening the promotion of government guidance are helpful to improve the favorable effect of VAT rate policy on enterprises.