Legislative Initiative in the Field of Local Taxation in China Under the Principle of Tax Legality

The article examines the principle of tax legality and its impact on the distribution of tax powers in China. It analyzes the legal framework established by the Constitution of the PRC, the Legislation Law, and the Tax Administration Law, which limit the powers of local authorities. The study highlights issues arising from the provinces' lack of authority to establish taxes, including financial dependence, reduced governance efficiency, and stifled innovation. It explores opportunities for expanding local powers through delegated legislation, such as the Environmental Protection Tax Law. The article proposes reevaluating central-local relations to achieve a balanced distribution of financial powers while considering regional specifics. The study emphasizes the need to combine formal and substantive requirements of the tax legality principle to improve tax legislation.