This year's legislative work plan involves value-added tax law, tariff law, consumption tax law, etc., which are all "highlights" of tax legislation. We should properly handle the relationship between reform and legislation, adhere to open door legislation, gather social consensus, continue to respond to practical needs and social concerns, and further implement the principle of statutory taxation.
In the 2023 annual legislative work plan issued by the Standing Committee of the National People's Congress and the State Council, legislation in the tax field has been widely concerned. According to the plan, the legislation of value-added tax, consumption tax, tariff and other important taxes has been accelerated, and some are expected to be introduced within the year. Another important step has been taken to build a modern fiscal and tax system and implement the legal principles of taxation.
"Implementing the principle of statutory taxation" is an important reform task proposed by the Third Plenary Session of the 18th CPC Central Committee. The establishment, collection and administration of taxes in accordance with the laws and regulations are closely related to the modernization of the national governance system and governance capacity, as well as the interests of the majority of business entities and the people. In recent years, the pace of tax legislation has accelerated, and 12 of the current 18 tax categories have completed legislation, effectively enhancing the scientificity, stability and authority of the tax system. At present, there are still six tax categories that need to be legislated, and how to complete the "war of closure" is highly anticipated.
This year's legislative work plan involves value-added tax law, tariff law, consumption tax law, etc., which are all "highlights" of tax legislation. For example, VAT is the largest tax category in China, accounting for nearly 40% of all taxes. Taxpayers almost cover all business entities. Consumption tax also accounts for a large proportion of tax revenue, plays an important role in regulating production and consumption behavior, and plays a prominent role in promoting energy conservation, protecting the environment, and regulating income distribution. These taxes have an important position in the tax system. The reform covers a wide range of areas, the situation is complex, and the legislation is difficult.
First of all, we should handle the relationship between reform and legislation. From the practice of implementing the principle of taxation legality, because the elements of the current tax system are basically reasonable, when formulating the tax law, we often follow the idea of tax system translation, keep the current tax system framework and tax burden level basically unchanged, and upgrade the original regulations to laws. The practice of shifting the tax system is conducive to maintaining policy continuity and stabilizing market expectations. At the same time, it is also necessary to pay more attention to consolidating the reform achievements through legislation, as well as reflecting certain foresight, promoting the further development of reform, and realizing the organic combination and coordinated promotion of the two.
In recent years, the reform of the tax system has continued to deepen, and many reform measures, such as "replacing business tax with value-added tax", optimizing and adjusting the scope of consumption tax collection, have profoundly affected economic and social development. In the VAT legislation, it is necessary to institutionalize a series of reform measures such as adjusting the tax rate level, improving the deduction chain, and the tax rebate system at the end of the period. At the same time, the next step of reform, such as adjusting the scope of consumption tax collection and moving back the collection of some consumption goods, can also be reflected in the consumption tax law.
Secondly, we should adhere to open door legislation and gather social consensus. Open door legislation can concentrate the wisdom of the people, reflect the public sentiment, reflect the public opinion, better improve the legal rules, coordinate the rights and interests of all parties, form the "greatest common divisor" of society, make the law more feasible, and promote the smooth implementation of the law. At the end of last year, the Standing Committee of the National People's Congress solicited public opinions on the draft VAT Law. The public responded warmly and put forward a series of suggestions. In the next step of VAT legislation, it is necessary to improve and optimize the tax collection scope, tax rate structure, legislative authorization, policy convergence and other issues of social concern. Similarly, the formulation of consumption tax law, tariff law and other laws should also pay attention to openness and transparency, and attract all sectors of society to participate in legislation.
In addition, we should continue to respond to practical needs and social concerns. The implementation of the principle of taxation legality is a continuous process, and the tax legislation is not a task of "completing its work in one service". It should be improved continuously after the completion of the legislation. For example, we should promote the reform and amendment of individual income tax in a timely manner, reasonably expand the scope of income included in comprehensive taxation, and improve special additional deductions. In addition, "following the law is not enough". The vitality of law lies in its implementation. We should adhere to the concept of tax administration according to law and improve the standardization and accuracy of tax law enforcement.
According to the plan, during the "14th Five Year Plan" period, China should establish and improve a tax system that is conducive to high-quality development, social fairness and market unity, and optimize the tax system structure. This goal is expected to be achieved as soon as possible by giving full play to the role of the rule of law as a guarantee to consolidate the foundation, stabilize expectations and benefit the long-term, and further implementing the principle of taxation legality. (Source: Economic Daily Author: Zeng Jinhua)
