Research on the Key Issues of Tax Reform of Construction Industry

As the transformation pilot work from business tax to value added tax for the construction industry approaches,tax reform attracts more and more attention. Based on theoretical analysis of tax burden of business tax and value added tax,the paper indicates the factors which influence the tax burden of the construction industry,not only the tax rate,but also input tax rate and the proportion of deductible cost of sales excluding tax. Then discuss three key issues which influence tax reform,labor cost,concrete and the floor materials,material supplied by the owner. Finally,provides corresponding policy advice.