Research On The Effect Of Value-added Tax Deduction Policy On The Investment Of Producer Service Enterprises

At present,profound changes unseen in the world in a century and the overlapping impact of the novel coronavirus pandemic are continuing,and the domestic economic development environment is becoming more complex,severe and uncertain.To ensure the steady performance of the national economy,China has put forward the strategy of expanding domestic demand.To expand domestic demand,on the one hand,we need to stabilize and expand consumption;on the other hand,we need to expand effective investment.Producer services enterprises are the main force of private investment and provide a large number of high-paying jobs in our job market,so promoting investment in producer services enterprises is very important to expand investment demand and consumption demand.Since reform and opening up,the tax industry has been involved in the whole process of China’s reform and development,giving strong support to the construction of the modern economic system and playing an important role in stimulating enterprise investment.In 2019,the preferential policy of value-added tax deduction and deduction was introduced for production and consumer services.This paper mainly studies the effect of value-added tax deduction policy on the investment of producer service enterprises.The paper is based on the data of 428 listed producer services companies for a total of 6 years from 2016 to 2021,takes the implementation of value-added tax deduction and deduction policy in 2019 as an impact event,and uses the "difference-in-differences" analysis to evaluate the effect of value-added tax deduction policy on the investment of producer services enterprises.It is found that the value-added tax deduction policy significantly promotes the investment of producer service enterprises.Through the analysis and test of the influence mechanism,it is also found that the promotion effect of the value-added tax deduction policy on enterprise investment will be affected by enterprise cash flow,and the more abundant cash flow enterprises,the more affected by the policy.In addition,the heterogeneity analysis and test found that the effect of the policy was different in property rights,regions and labor costs.The value-added tax deduction policy had a more significant promoting effect on the investment of non-state-owned enterprises,enterprises in eastern regions and enterprises with low labor costs.The study of this paper is helpful for in-depth understanding of the micro-influence mechanism between tax policy and enterprise fixed asset investment,and provides theoretical and empirical basis at the enterprise level for China to make better use of tax policy to expand domestic demand and achieve sustainable and healthy economic development under the background of global economic downturn.