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 the core of the special tax arrangements in Hainan Free Trade Port will enhance its unique competitive advantages after the port's closure operation begins [1] Tax System Reform - The "Simplified Tax System" aims to consolidate various taxes into a sales tax, which will be levied at the retail stage for goods and services, thereby reshaping the tax structure and enhancing tax competitiveness to attract capital [2][4] - The reform is expected to significantly reduce double taxation, particularly benefiting manufacturing enterprises reliant on imported raw materials, while local small businesses may face price increases due to tax burdens at the sales stage [4][5] International Comparison - Many mature free trade ports, such as Hong Kong, utilize simple tax systems, which have proven effective in attracting investment and enhancing tax competitiveness [5] Tax Design Challenges - The core goal of the "Simplified Tax System" is to create a scientifically simple tax structure with lower tax burdens, but challenges remain, particularly in designing the sales tax [7][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 of reducing indirect tax ratios and overall tax burdens [7][8] Implementation Challenges - The reform is currently in the research and discussion phase, facing complexities in fiscal revenue distribution and tax coordination between Hainan and other provinces [11][12] - The implementation of the "Simplified Tax System" may lead to increased challenges in tax administration, particularly in managing a dispersed taxpayer base in the retail sector [12] Price Competitiveness and Arbitrage Risks - The introduction of "zero tariff" policies and the "Simplified Tax System" is expected to enhance the competitiveness of domestic goods, but may also widen the price gap between domestic and foreign products, potentially leading to arbitrage activities [13]