A Study on the Legislative Power of Local Taxation under the Background of Further Comprehensive Deepening of Reform

The power of tax legislation is the most fundamental and creative form of tax authority and represents the core of national tax sovereignty. Currently, there is insufficient theoretical and legal justification for local legislative power over taxation in China. The Third Plenary Session of the 20th Central Committee of the Communist Party of China proposed "appropriately expanding local tax administration authority," which provides direction and justification for further clarifying and enriching local legislative tax power. Against the backdrop of implementing statutory taxation principles, improving the direct tax system, gradually transferring the collection of consumption tax to local authorities, adjusting the sharing ratios of taxes, and integrating local surtaxes, it is essential to scientifically design a decentralized legislative mechanism between central and local governments. Appropriately granting local legislative tax powers not only aligns with the internal requirements of perfecting Chinas legal system but also addresses the practical demands of implementing statutory taxation principles. Therefore, in the practical operation of improving local legislative tax powers, it is feasible to moderately authorize local governments with multiple powers, such as taxation legislation, formulating tax regulations, interpreting tax laws, adjusting tax categories and rates, and granting or reducing tax burdens. This is of vital significance for further deepening reform under the rule of law, advancing Chinese-style modernization, improving a tax system conducive to high-quality development, social equity, and market unity, and building a clear and coordinated central-local fiscal relationship with balanced local development.