Effect Of Fiscal Subsidies And Tax Incentives On New Energy Vehicles

At present,facing the background of high crude oil prices,unstable crude oil supply and irreversible global warming worldwide,coupled with the characteristics of China’s large population and large energy consumption.And compared with developed countries,China is relatively slow in developing new energy vehicles because of the late start,poor technology and imperfect construction of related infrastructure.As a result,the government’s financial and tax incentives are particularly important to the better and faster development of new energy vehicles.The focus of this paper is discussing and analyzing the effect of government’s promulgated fiscal and tax incentives on new energy vehicle enterprises.First,the author introduces the background environment of the development of new energy vehicles at home and abroad,as well as domestic and foreign literature research,and reviews the existing literature;second,the author introduces the status of new energy vehicles in China,and organizes and analyzes the existing fiscal and tax policies,summarizing the characteristics of the existing policies and the areas that need to be improved;then,the author conducts theoretical analysis and concludes that fiscal and tax After that,I conducted a theoretical analysis and concluded that the preferential policies not only can improve the R&D enthusiasm of enterprises,but also can improve the profits of enterprises;after that,I used Stata data analysis tool to conduct regression analysis and designed two models,model 1 and model 2 to study the impact of preferential policies on the R&D investment intensity and operating profitability of enterprises respectively;then,I summarized the excellent experiences and practices of some developed countries to draw inspiration.Finally,based on the specific results of the empirical analysis,the author proposes improvements in terms of financial subsidies and tax preferences.Through the empirical analysis,the author obtained the following results: First,both financial subsidies and tax incentives are conducive to improving the R&D investment intensity and operating profitability of new energy vehicle enterprises,which help to promote the development of new energy vehicle enterprises;then,the positive impact of tax incentives on new energy vehicle enterprises is more significant than financial subsidies,mainly because of the difference between financial subsidies and tax incentives ex ante and ex post.Tax incentives are more suitable for enterprises with good operating conditions,while financial subsidies are more suitable for start-ups and enterprises with poor operating conditions.Therefore,tax incentives are more suitable for the stable business companies;finally,the negative impact of corporate income tax is more significant compared with that caused by transfer tax,mainly because corporate income tax is a direct tax and its tax burden is difficult to be passed on.In response to the regression results,I put forward policy suggestions in terms of financial subsidies and tax incentives.On the one hand,since fiscal subsidies have a significant positive impact on indicators such as operating profitability and R&D investment intensity of new energy vehicle enterprises,the government should continue to improve the content of the fiscal subsidy policy,supplement and improve the supervision and assessment methods,and steadily implement the fiscal regression plan,so as to guide enterprises to make better and more efficient use of subsidy funds for R&D production.On the other hand,the government should focus on improving tax preferential policies,as well as turnover tax,in order to improve their production enthusiasm and R&D innovation ability.This is because both the turnover tax rate and the corporate income tax rate will have a negative impact on the development of new energy vehicle enterprises.However,the specific impacts of the turnover tax and the corporate income tax also differ,with the corporate income tax having a more significant negative impact on the operating profitability and R&D investment intensity of enterprises than the turnover tax.