Study On The Influence Of VAT Ratention And Tax Rebate Policy On Total Factor Productivity Of Manufacturing Industry

To enhance the business environment for enterprises and alleviate their operational burdens,the government has rolled out a number of preferential policies to cut taxes and fees,among which is the policy of withholding VAT rebates.In a long period of time,there has been a phenomenon that the final input tax exceeds the output tax in our manufacturing enterprises,which leads to the existence of a large amount of tax credits in the manufacturing industry,which hinders the high-quality development of the manufacturing industry.On March 21,2022,the Ministry of Finance and the State Administration of Taxation jointly issued the Announcement of the State Administration of Taxation of the Ministry of Finance,which aimed at strengthening the implementation of the Policy of Tax Rebate at the end of the period.This announcement specifically outlined the VAT rebate matters for small and micro enterprises as well as the manufacturing industries.As a result,VAT rebate became a crucial aspect of the current tax reduction and fee reduction initiatives.Considering the comprehensive implementation of VAT rebate and the promotion of the manufacturing industry’s transformation and upgrade,this study examines the impact of VAT rebate on the total factor productivity of the manufacturing industry.Such research holds significant theoretical and practical value.This thesis begins by conducting a comprehensive review of existing literature on both domestic and international levels concerning the VAT rebate system and the factors influencing total factor productivity.It provides a concise summary of the literature and highlights potential areas of innovation in this study.Subsequently,building upon relevant theories,this thesis examines the process and implementation status of the VAT tax rebate policy.It estimates the magnitude of manufacturing tax rebates from 2015 to 2021 and conducts an analysis of the overall trend in total factor productivity among listed manufacturing companies during the same period.Finally,employing the PSM-DID(Propensity Score Matching with Difference-in-Differences)method,this thesis empirically tests the specific impact of the 2018 VAT tax rebate policy on the total factor productivity of A-share listed manufacturing companies.It further investigates the heterogeneity among manufacturing enterprises based on factors such as fixed assets ratio,inventory turnover,property rights nature,and size.The primary research findings of this study can be summarized as follows: The implementation of VAT rebate demonstrates a significant positive effect on the enhancement of total factor productivity within the manufacturing industry of listed companies.This effect is particularly pronounced in small and medium-sized private enterprises characterized by substantial assets and low inventory turnover.One of the main innovations of this thesis lies in the topic selection.Existing domestic literature lacks research on the impact of value-added tax(VAT)carried forward and refunded on the total factor productivity of the manufacturing industry.This thesis chooses to analyze and examine the influence of VAT carried forward and refunded on the total factor productivity of the manufacturing industry,thus providing a certain supplement to the relevant research on VAT carried forward and refunded.Secondly,according to the characteristics of different industries,the influence of policy heterogeneity is investigated to supplement heterogeneity analysis.Considering the impact of fixed asset investment and sales inventory of manufacturing enterprises on VAT input tax and output tax,as well as the impact of scale effect on total factor productivity of enterprises,Heterogeneity analyses of fixed assets and turnover,nature of property rights,and firm size are supplemented.