The Impact Of Tax Reduction And Fee Reduction On The Investment Of Enterprises In The Energy Industry

The importance of energy security and innovation was emphasised by General Secretary Xi Jinping in his 20 th National Congress report.Corporate investment is a major driver of China’s economic growth,and the energy industry,with its unique position,is likely to be a focal point of China’s investment and high quality development,while the Party Central Committee attaches great importance to taxation.At present,there is little academic research on tax reduction and fee reduction in the energy sector,which plays a very important role as a fundamental industry in relation to China’s national economy,and it is therefore necessary to study the impact of tax reduction and fee reduction on the investment level of companies in the energy sector.In light of the aforementioned background,this thesis adopts a systematic approach to sort,summarize,and review relevant literature,using optimal taxation theory,tax reduction theory,and neoclassical investment model to explore and analyze the impact of tax and fee reductions on corporate investment.It takes A-share listed companies in the energy industry from 2012 to 2021 as research samples,analyzing the effects of tax and fee reduction policies on the overall tax burden rate,turnover tax burden,income tax burden,and social security provident fund burden on enterprise investment.Additionally,this thesis investigates the impact of tax burden reduction on the investment level of energy industry enterprises with different property rights,industries,and scales,providing a fresh perspective for researching the effect of tax reduction policies on enterprise investment.Based on empirical results,the study concludes that reducing the total tax burden rate,turnover tax burden,and social security provident fund burden can significantly boost the investment level of enterprises in the energy industry.Furthermore,the study found that the effects of the reduction of the total tax burden rate on the investment level of enterprises in different sub-sectors of the energy industry vary.Tax and fee reductions have a considerable promotion effect on increasing the investment level of non-state enterprises in the energy industry.Additionally,the thesis concludes that the incentive effect of reducing tax burden on the investment level of small-scale enterprises in places with large enterprises is better than that of large-scale enterprises.Finally,based on the problems in the current implementation of China’s tax reduction and fee reduction policies,corresponding policy recommendations are put forward in conjunction with the results of the empirical analysis,including further increasing the intensity of tax reduction and fee reduction related to corporate investment,promoting relevant supporting reforms,formulating more targeted differentiated corporate investment tax policies and social security contribution standards and policies,and forming an evaluation mechanism for the effects of policy implementation.These suggestions can provide some reference for the continuous improvement of China’s tax incentive policies.Lastly,based on the problems in the current implementation of China’s tax-cutting and fee-cutting policies,the corresponding policy suggestions are advanced alongside the results of the empirical analysis,including further increasing the intensity of tax cuts and fees associated with corporate investment,promoting relevant supporting reforms,formulating more targeted differentiated corporate investment tax policies as well as social security contribution standards and policies,and forming a mechanism for evaluating the effects of policy implementation.The following suggestions can provide some reference points for China’s continued improvement in tax incentive policies.