An Analysis of the Impact of the Reform of Business Tax to VAT in Transportation Industry & A Case of Inner Mongolia

DOI

10.2991/sshme-16.2016.28How to use a DOI?

Keywords

Regional economic, Value added tax, VAT-CGE model, Transportation industry

Abstract

By analyzing the economic effect and its mechanism of the reform of business tax to VAT on transportation industry in Inner Mongolia, we built the VAT-CGE model, and analyzed the impact of different tax rates and different forms of value added tax policy on the Inner Mongolia economy. The results showed that, if the transportation and warehousing tax rates are set to 11% and 6% respectively, the fixed asset investment is allowed to be deductible. Tax revenue will be reduced in Inner Mongolia, but the actual GDP will increase by 5.494% , the employment rate of the transport sector will raise 9.264%, the welfare of the residents will also added. So the “business tax to VAT” of transportation industry helps to optimize the investment structure of fixed assets in each industry and accelerate industrial transformation and upgrading.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Xin-Ji-Le-Tu Yang
AU  - Yu-Ting Liu
AU  - Wei-Hong Han
PY  - 2016/06
DA  - 2016/06
TI  - An Analysis of the Impact of the Reform of Business Tax to VAT in Transportation Industry & A Case of Inner Mongolia
BT  - Proceedings of the 2016 International Conference on Social Science, Humanities and Modern Education (SSHME 2016)
PB  - Atlantis Press
SP  - 148
EP  - 152
SN  - 2352-5398
UR  - https://doi.org/10.2991/sshme-16.2016.28
DO  - 10.2991/sshme-16.2016.28
ID  - Yang2016/06
ER  -