Research On The Impact Of Replacing Business Tax With Value-added Tax On The Operating Performance Of Commercial Banks

With the continuous development of China’s economy,the collection of business tax can no longer adapt to the current development situation.Because of the obvious double taxation drawback of the business tax system,the tax burden of the banking industry is constantly increasing.This phenomenon has a significant adverse impact on the steady development of the banking industry.The implementation of the policy of replacing business tax with value-added tax has realized the change from business tax to value-added tax,which is a milestone development of China’s fiscal and taxation system.The implementation of this system effectively converts the"reduction" of short-term income into the "improvement" of long-term development capacity,which is of great significance to the development of the banking industry and even the national economy,and can effectively promote the improvement of the efficiency of supply side structural reform.Therefore,for commercial banks,how to effectively use the opportunities brought by replacing business tax with value-added tax to reduce the tax burden has also become the focus of commercial banks.Since May 1,2016,China has comprehensively implemented the policy of replacing business tax with value-added tax,and comprehensively levying value-added tax is not only an opportunity but also a challenge for the development of commercial banks in China.In recent years,the development speed of China’s commercial banks has been significantly accelerated.However,compared with large state-owned banks,commercial banks also show the characteristics of high tax burden,low risk resistance and limited development.In general,the challenges and uncertainties brought by the implementation of the policy of replacing business tax with value-added tax to commercial banks should not be ignored.Therefore,this paper will focus on the impact of replacing business tax with value-added tax on the business performance of commercial banks.First of all,the relevant research on replacing business tax with value-added tax is summarized,and then the current research status and shortcomings are clearly grasped,the research direction of this paper is clarified,and the research contents and methods of this paper are determined.Secondly,this paper makes an in-depth analysis of the impact mechanism of the research object from the two dimensions of tax burden and cost,and traces and discusses the policy effect,so as to more comprehensively understand the impact of the policy of replacing business tax with value-added tax on the operational capacity,solvency,profitability and growth capacity of commercial banks;At the same time,this paper selects China Merchants Bank as the case object to carry out a comparative analysis of the business performance before and after the change of business tax to value-added tax.Combining with the tax theory and the performance evaluation system,it briefly expounds its business status,and determines the financial indicators that have an impact on the bank’s tax burden and business performance from the four dimensions of the bank’s business capacity.Finally,the data of 30 listed commercial banks were selected as the basis for empirical analysis.The analysis found that the change of business tax to value-added tax had a significant negative impact on the operating performance of listed commercial banks.After that,the robustness test was carried out in the form of replacement dependent variable to verify the robustness of the research conclusion.At the same time,from the perspective of property rights and bank scale,the heterogeneity analysis is carried out.It is found that the negative impact of replacing business tax with value-added tax on state-owned banks is more significant than that of non-state-owned banks,and the negative impact on large banks is more significant than that of small and medium-sized banks.Finally,based on the analysis results of the paper,some policy suggestions are put forward.