A tourist shops at a duty-free store in Hainan province. [Photo by Meng Zhongde/for China Daily ]

BEIJING -- Chinese lawmakers are considering a draft law whose newly added details allow tax refunds for goods from the country's inland area to the Hainan free trade port (FTP).

Value-added tax and consumption tax should be refunded for goods from China's inland area as per related rules, said the draft law. It was submitted to a regular session of the Standing Committee of the National People's Congress for its third reading on Monday.

The refund policy aims to avoid a tax imbalance between domestic and imported goods and ensure fair market competition in the FTP.

When the FTP starts operation, it will also simplify and combine value-added tax, consumption tax, vehicle purchase tax, urban maintenance and construction tax, and education surcharges, the draft law said. Sales tax will be levied in the process of goods and service retail.

The taxation system for the FTP will be further streamlined, according to the draft.

The draft also stresses ecological and environmental protection, sustainable development, and the prevention of invasive species.