The Impact Of Vat Rate Reduction On The Transformation And Upgrading Of China’s Manufacturing Industry

In recent years,the economic globalization and sino-us trade friction have brought great pressure on our economic development,and the growth rate has slowed down.Manufacturing industry occupies an important position in our national economy,but in recent years,the growth rate of added value of manufacturing industry has slowed down obviously,and there is a problem that the upgrading of product structure and consumption structure can not match,the supply capacity of high-quality,high-complexity and high-value-added products is obviously insufficient,and the industry urgently needs to change from low-value-added links to high-value-added links.Although the electronic equipment manufacturing industry of our country has great development potential and is highly participating in the international vertical division of the global value chain,it is greatly affected by the supply and demand of the international market.In recent years,it has been constantly influenced by the policies of various countries,and the pressure of development has multiplied.The adjustment of tax rate is an important link for our country to carry out the positive financial policy to promote the transformation of enterprises and economic development.Since the“Change from business to VAT”,the VAT system has been continuously improved,especially in the May 1,2018 and April 1,2019 vat rate reduction policy,reducing the applicable tax rate of manufacturing industry from 17%to 16% and then to 13% will have a profound impact on reducing the tax burden and promoting the development of enterprises.This paper discusses the influence of the second VAT rate reduction on the transformation and upgrading of manufacturing industry.Specifically,the first chapter sorts out domestic and foreign literatures,and the second chapter expounds the related concepts,theoretical basis,development process and economic effects of VAT rate,and introduces the basic meaning of manufacturing transformation and upgrading from two dimensions of industrial transformation and industrial upgrading.In addition,it analyzes the specific factors of VAT rate affecting manufacturing transformation and upgrading through a simple case.The third chapter analyzes the current situation of manufacturing transformation and upgrading.The fourth chapter is the empirical analysis.This paper selects the double difference model,which is conducive to intuitive analysis of the effect of policy implementation,and further adopts the relevant robustness test.Finally,it comes to the conclusion that the reduction of VAT rate can improve the labor productivity of enterprises,and then improve the level of manufacturing transformation and upgrading.Finally,the fifth chapter summarizes the conclusions and suggestions.