How "Extralegal Simplification" of the GST is Possible?On the Perspective of Regional Separate Construction of the Tax System
Based on the new regional development concept of"Tax Competition"proposed by the CPC Central Committee and the State Council in the Overall Plan for the Construction of Hainan Free Trade Port,Article 27 of the Hainan Free Trade Port Law clearly stipulates the short-term goal of levying sales tax in the retail sector of goods and services and the long-term goal of further simplifying its tax system.Policy-makers hope to reconstruct a set of regional special tax system that is more suitable for Hainan's develop-ment without changing and affecting the universal standard tax system implemented in other regions in China except Hainan Free Trade Port.Although this"Separate Construction of the Tax System"scheme,which is subject to tax system competition,is not only different from the existing tax system practice experience of various types of free trade parks(ports)in and outside the region,but also breaks through the traditional re-form path of China after the reform and opening up to enhance the unity of the tax system.However,from the perspective of the basic theory of tax law,it is not difficult to find that the"extrajudicial simplification"that decision-makers want to achieve is still based on the two basic principles of tax law:"tax economy"and"tax fairness",and the resulting"special tax law"can also achieve logical self consistency under the institutional premise of"positioning Hainan as a quasi-customs territory".It is only necessary to empha-size that whether this regional tax legislation model based on the concept of"Separate Construction of the Tax System"can ultimately become a stable tax system arrangement depends to a large extent on whether the regional special tax system established through the Hainan Free Trade Port Law can effectively link up and interact with China's universal standard tax system.
goods and services taxextrajudicial simplificationseparate construction of the tax sys-temspecial tax lawquasi-customs territory
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