Proceedings of the 2023 International Conference on Economic Management，Financial Innovation and Public Service (EMFIPS 2023)

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Analysis of the Impact of the Policy of Replacing Business Tax with VAT on the Economy

Authors
Boshen Chen1, *
1Economic, Business School, Xijiao Liverpool, Suzhou, 215123, China
*Corresponding author. Email: 1447885120@qq.com
Corresponding Author
Boshen Chen
Available Online 21 June 2024.
DOI
10.2991/978-94-6463-441-9_2How to use a DOI?
Keywords
Replacing business tax with VAT; Economic impact; Differences-in-Differences method; Policy proposal
Abstract

To address the impact of unreasonable tax system on China’s economy, China began to implement the policy reform of “replacing business tax with VAT” in 2011 to optimize the tax system. This paper uses the panel data of economic indicators of provinces from 2005 to 2017, the economic benefits of the “replacing business tax with VAT” policy among regions were tested by double difference method. The study found that compared with the provinces that did not implement the “replacing business tax with VAT” in 2012, the provinces that implemented the policy in the same year have shown significant positive benefits for regional GDP and the number of nighttime lighting, mainly through three major mechanisms. According to the research results, this paper also puts forward substantive policy recommendations for the follow-up reform of “replacing business tax with VAT.”

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2023 International Conference on Economic Management，Financial Innovation and Public Service (EMFIPS 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
21 June 2024
ISBN
978-94-6463-441-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-441-9_2How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Boshen Chen
PY  - 2024
DA  - 2024/06/21
TI  - Analysis of the Impact of the Policy of Replacing Business Tax with VAT on the Economy
BT  - Proceedings of the 2023 International Conference on Economic Management，Financial Innovation and Public Service (EMFIPS 2023)
PB  - Atlantis Press
SP  - 4
EP  - 18
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-441-9_2
DO  - 10.2991/978-94-6463-441-9_2
ID  - Chen2024
ER  -