Tax and Fee Reduction Policies and Actual Tax Burden of Enterprises

Based on micro data of A-share listed companies in the Chinese capital market from 2012 to 2019, this paper empirically examines the impact of tax and fee reduction policies on the actual tax burden of enterprises, as well as the role of the merger of tax and fee collection and management rights. The research results show that the tax reduction and fee reduction policy significantly reduces the actual tax burden of enterprises. The merger of tax and fee collection and management rights significantly suppresses the tax reduction effect of tax and fee reduction policies. Further analysis shows that in regions with high financial pressure and strong tax collection and management efforts, the effect of tax and fee reduction policies on reducing the actual tax burden of enterprises is not remarkable.