Research on Levying of Extending VAT Tax of Transportation Industry Based on Fuzzy TOPSIS

Abstract

In this paper, we endorsed expending in VAT should be implemented step by step. Then we select the transportation industry as the breakthrough point, by combining qualitative analysis and quantitative analysis methods and analyze tax pass-through effect, enterprise behavior effect and resource allocation effect between sales tax and VAT. It is made some correction based on the traditional measurement indicators and analyzed the current situation of our transportation industry's tax burden, description the necessity of changing transportation industry form business tax to VAT and the feasibility of this change. It is analyzed the taxpayer identity, tax rate and tax preference after the reform in the basis of TOPSIS. On the basis of simulation and transportation industry characteristics, we get a logical VAT rate. We analyze the economic effects and financial income because of transportation industry business tax into VAT.