Research On The Impact Of Consumption Tax Reform On Automobile Manufacturing Enterprises

As the pillar industry of my country’s industrial development,the automobile manufacturing industry occupies a pivotal position in my country,Since the establishment of the market economy,China’s auto manufacturing industry is developing rapidly,the scale of private cars has increased by more than 100 times,and they have become popular in ordinary households as a durable product.But the surge in the number of motor vehicles has brought enormous pressure to the urban environment.The phenomenon of energy consumption,vehicle exhaust emissions and traffic jams aggravates the accumulation of pollutants,which seriously deviates from the original intention of the country to protect the ecology.Therefore,how to solve the people’s growing demand for automobile consumption the contradiction between the concept of energy conservation and emission reduction and environmental protection is an important issue for the government to adjust the structure of the automobile manufacturing industry.Consumption tax is my country’s fourth largest source of income after value-added tax,corporate income tax,and personal income tax,also is one of the important tasks in the reform of my country’s fiscal and taxation system.How to use the consumption tax policy to promote the development of automobile enterprises is also the direction that the Chinese government continues to practice.Throughout the reform process of consumption tax in China,China began to collect the automobile consumption tax in 1994,and made the policy adjustment in 2006,2008 and 2016 respectively,constantly increasing the tax level difference and optimizing the tax rate,but there is still much room for the reform of automobile consumption tax.This paper aims to systematically study the path of automobile consumption tax reform affecting automobile manufacturing enterprises to reflect the necessity of my country’s consumption tax reform and point out the direction for the next action of consumption tax,so that the four functions of consumption tax in making up for negative externalities,raising fiscal revenue,protecting the ecological environment and adjusting income distribution can be given better play in the automobile industry to promote residents’ automobile consumption and sustainable development of society.This paper takes the reform of automobile consumption tax policy as the main research object,and uses the method of theoretical research combined with case analysis to analyze the impact mechanism and effect of my country’s automobile consumption tax.Firstly,on the basis of literature research,the internal mechanism between automobile consumption tax reform and automobile enterprises is clarified.Then,the current situation of consumption tax and development status of my country’s automobile manufacturing industry is analyzed by referring to "Tax Yearbook" and "Automobile Industry Yearbook".Then from a micro perspective,through the calculation and arrangement of SAIC Group’s annual report data,explore the changes of SAIC’s tax burden,production and sales and product structure before and after the automobile consumption tax reform,and build a DEA model to evaluate SAIC’s financial performance during the consumption tax reform,and further verify how the reform of automobile consumption tax is.ultimately affect the business.From a macro perspective,the vehicle purchase tax is used to measure the changes in the distribution of local consumption tax revenue and the impact on the local fiscal balance when the automobile consumption tax collection link is shifted from the production link to the retail link.On this basis,the impact of local finance change on SAIC’s business environment is analyzed.Finally,based on the problems found in the case analysis process,reasonable and feasible suggestions are put forward.This paper draws the following conclusions: at the micro level,the consumption tax reform has increased the tax burden of SAIC Group.During the reform process,the production and sales of SAIC’s small-displacement vehicles only maintained a short-term growth trend,and consumers were more inclined to choose medium-displacement vehicles.The consumption tax reform has forced SAIC to adjust its product structure and continue to develop and put into production new energy vehicles.Its sales and revenue continue to increase,which in turn leads to a reduction in the group’s consumption tax burden and operating costs.However,the growth of SAIC’s operating income in the new energy vehicle sector is proportional to the financial subsidies it receives,and the development of environmentally friendly vehicles relies heavily on financial subsidies and preferential corporate income tax policies.Using the data envelopment method,it is found that SAIC Group’s profitability is not optimal,the R&D investment is unreasonable,and the highlights of better cost control under the background of consumption tax reform.At the macro level,after the consumption tax in the future collection link was moved to the sales link and changed to the incremental sharing model,the consumption tax revenue of each province increased or decreased compared with the consumption tax collection revenue of the production link,and the fiscal revenue and expenditure gaps in the eastern,central and western regions were obviously filled.In order to expand the source of income,local governments will vigorously stimulate automobile consumption,and SAIC’s business environment has been optimized.According to the above analysis for the enterprise development and consumption tax to put forward optimization suggestions: SAIC should plan R&D investment to increase profits;optimize tax planning and reduce tax burden costs.The state should change the taxation method from in-price to out-of-price for consumption tax;optimize the setting of elements to guide consumption;and move the collection link to the retail link.To build a good development environment for automobile manufacturing enterprises,the government should change the consumption tax revenue to be shared by the central and local governments;link up with other taxes to improve the construction of supporting facilities;include consumer service behaviors in the scope of consumption tax collection to reduce the tax burden of automobile enterprises.