Impact of Replacing Business Tax with VAT in the Financial Industry on Banking Stability
As a structural tax reduction policy,whether the financial industry's replacing business tax with VAT policy can improve the stability of banking still lacks attention.Based on the data from 133 banks from 2009 to 2021,a double fixed effects model is used to test the relationship between the implementation of replacing business tax with VAT and banking stability.The results show that the financial industry's replacing business tax with VAT significantly promoted the stability of banking.The banking stability effect of replacing business tax with VAT is more prominent for those banks with short-term presidents,located in the eastern regions,regions with low tax bur-den and high investment in local financial supervision,and regions with a high proportion of tertiary sector of the e-conomy.The reform of replacing business tax with VAT mainly improves the stability of banking through three channels:reducing the comprehensive tax burden of banks,optimizing business structure and promoting digital transformation.
Banking StabilityReplacing Business Tax with VAT in Financial IndustryStructural Tax Reduction
NETL
NSTL
万方数据
