Abstract The policy of “Replacing the Business Tax with a Value-added Tax” is the main tax reform policy to reduce taxes and fees. While eliminating double taxation and reducing the tax burden of enterprises, it is worth studying whether it can enhance the market vitality of enterprises and promote high-quality economic development. This paper uses the service industry data of A-share companies from 2003 to 2019 to empirically test the impact and mechanism of the policy of “Replacing the Business Tax with a Value-added Tax” on industry monopoly power. The study finds that this policy significantly reduces the monopoly power of the industry, and through a series of robustness tests and endogenous tests find that this conclusion is still valid. The function mechanism test shows that this policy reduces the monopoly power of the industry by reducing the turnover tax burden of enterprises and the overall tax burden of enterprises. And the heterogeneity test indicates that the restraining effect of this policy on industry monopoly power is more significant in small and medium-sized enterprises and enterprises in low tax competition environment. This conclusion helps to fully understand the impact and its action path of this policy on industry monopoly power, and provides an important reference for tax reform policies.
HE Hong,SHI Luhan. Does the Policy of “Replacing Business Tax with Value-addeed Tax” Reduce Industry Monopoly Power?. Economic Survey, 2022, 39(5): 067.
2022, Vol. 39 
