The standing committee of the 13th National People's Congress (NPC) will work on legislation to safeguard national food security and improve the value-added tax (VAT) system, according to the NPC's two special committees.

During the fourth session of the 13th NPC, a number of deputies submitted proposals on formulating a food security law and a VAT law, stressing the importance of establishing a food security system in the new era and improving the legislative system of turnover tax.

The food security law should cover grain production and operation, reserve regulation, early warning and emergency response, safety responsibility, industrial development and legal liability, according to the proposals.

In response, the Ministry of Justice (MOJ) has solicited suggestions from the Central Committee of the Communist Party of China, State Council, local governments and key enterprises, organized expert discussions and on-site surveys, and improved the draft law with the help of involved parties.

The MOJ said it will keep the deputies' suggestions in mind while revising the draft to further improve regulations on food security.

The NPC Agriculture and Rural Affairs Committee said they will further advance this legislation process and submit a draft to the session of the NPC Standing Committee for deliberation as soon as possible. 

For the legislation on VAT, deputies said in their proposals that a VAT law should be created to consolidate the foundation of tax system legislation, ensure a complete chain for VAT deductions and promote social co-governance of invoice management. They advised combining VAT reform with legislation.

The NPC Financial and Economic Affairs Committee said they have asked relevant departments to step up efforts in VAT legislation.

The Ministry of Finance (MOF) said that China has gradually established a standardized framework for its consumption-based VAT system after a series of reforms, which has laid a good institutional foundation for legislation.

The MOF and the State Administration of Taxation submitted the draft VAT law to the State Council for approval in May 2020, and are now revising and improving the draft for examination with the MOJ.