On Phenomenon of Tax Burden Increase in Some Service Industry Enterprises during Substituting Value-added Tax for Business Tax Reform

Tax burden increase in some service industry enterprises during substituting the Value-added tax for business tax reform has resulted in some doubts and worry.Theoretical analysis and practical investigation show that it is not abnormal since tax reform has a dual effect on tax burden of service industry.The main reasons include high value-added tax rate,low intermediate input ratio,long fixed assets renewed period,limited reform range as well as difficulties in access to value-added tax invoices.As the phenomenon far from significantly affecting overall reform,tax burden increase in some service industry enterprises and its negative influences should not be exaggerated.In addition,the evaluation criteria are not confined to enterprise tax burden change.Therefore,the most pressing matter now is to carry out transitional financial subsidy policy and solve technical difficulties in access to value-added tax invoices.In the long term,timely expanding the range of substituting the Value-added tax for business tax as well as adjusting the value-added tax ratio are critical measures to deal with tax burden increase problem.