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

The phenomenon that tax burden increases in some service industry enterprises during substituting the value-added tax for business tax reform has resulted in some doubts and worries on the reform.The theoretical analysis and practical investigation show that such a phenomenon is not abnormal since the tax reform has a dual effect on the tax burden of service industry.The main reasons for the phenomenon include high value-added tax rate,low intermediate input ratio,long fixed assets renewed period,limited reform range and difficulties in access to value-added tax invoices.As a phenomenon far from significantly affecting the overall reform,the 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.Confronting the problem of tax increase in some service industry enterprises,the most pressing matter of the moment is to carry out a 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 and adjusting the value-added tax ratio are critical measures to deal with the problem of tax burden increase.