放大竞争优势 海南“简税制”改革值得期待丨财税观察

Core Viewpoint - The "simplified tax system" at Hainan Free Trade Port aims to enhance its competitive advantage by consolidating various taxes into a sales tax, which is expected to attract capital and improve the tax revenue structure [1][3][4]. Tax System Reform - The "simplified tax system" will merge multiple taxes, including VAT and consumption tax, into a single sales tax, significantly reducing the issue of double taxation [3][6]. - The reform is anticipated to lead to a notable price differentiation for goods in Hainan, with manufacturing firms benefiting from reduced costs due to tax exemptions on imports, while local small businesses may face price increases [3][10]. International Comparison - Many developed free trade ports, such as Hong Kong, utilize simple tax systems, which Hainan aims to emulate to enhance its tax competitiveness and attract investment [4][8]. - International examples, like Singapore's 7% Goods and Services Tax (GST), provide valuable insights for Hainan's tax reform [8]. Tax Design Challenges - The core goal of the reform is to create a simple and scientifically structured tax system with lower tax burdens, but challenges remain, particularly in designing the sales tax [6][10]. - Two main design approaches for the sales tax are proposed: "broad tax base with low rates" or "narrow tax base with high rates," with experts suggesting that the former may better suit Hainan's goals [6][7]. Implementation and Challenges - The Ministry of Finance is progressing with the sales tax reform, emphasizing a gradual and orderly approach, but full implementation may not occur within the current five-year plan due to complexities [10][11]. - The reform may simplify the tax system but could also complicate tax administration, especially in managing a dispersed taxpayer base and preventing tax evasion [11].