Study on the Impact of Tax Reduction Policies on Total Factor Productivity of Manufacturing Industry in Sichuan Province under High-Quality Development

Abstract

China's government has adopted an active tax reduction policy in order to alleviate the difficulties in the development of the manufacturing industry and promote its high-quality development. 2022, the Sichuan Provincial Party Committee has set the goal of "building an advanced manufacturing province with significant influence in the country", so how is the manufacturing industry in Sichuan affected by the country's macro-tax reduction policy, and what is the effect of different tax reduction policies, and whether it is affected by the heterogeneity of enterprises? How is the manufacturing industry in Sichuan affected by the China macro tax cut policy? This paper finds that tax cuts on the total factor productivity of listed manufacturing enterprises in Sichuan: In general, both income tax cuts and value-added tax (VAT) cuts have played a positive role in the total factor productivity of manufacturing enterprises in Sichuan, but different types of manufacturing enterprises have been affected to varying degrees. The findings of this paper are useful for the formulation of targeted, precise and efficient tax policies.