Property Tax Touted as Cure for Market’s Ills
China may start to levy a long-expected property tax in the coming few years, a senior official with the top legislature’s financial committee said at the 8th Caixin Summit on Thursday.
The central government has accelerated the drafting of a property tax law since it started to experiment with this kind of tax in some cities in 2011, hoping to diversify local governments’ sources of income and control property speculation.
But the draft law has not yet been submitted to the National People’s Congress (NPC) for deliberation due to debates over the law and concerns about the possible impact of the new tax on various groups in society, NPC spokeswoman Fu Ying said in March.
Huang Qifan, a vice chairman of the NPC’s Financial and Economic Affairs Committee, said at the Caixin summit: “Generally speaking, this is an important reform arrangement for a healthy and sustainable housing market. You won’t have to wait for 10 years or 20 years. The government will start levy the tax in the next few years.”
A property tax will improve the integrity of China’s tax system and reduce speculation in the country’s real estate market, he added.
Instituting a property tax will improve the tax system’s integrity by adding a direct tax to a system made up of indirect levies, Huang said. The tax could also cool real estate markets where speculation has driven up prices over the last few years, he said.
A property tax will also push more homeowners to rent out idle properties to cover their tax payments, making better use of the country’s current housing stock, Huang said.
Xu Lin, a director of the urban development and reform center at the National Development and Reform Commission, China’s top economic planner, also said at the Caixin summit that a property tax will encourage governments to take a tougher line on polluting or unsustainable economic activities by giving them another income stream.
Local governments may also consider easing some indirect taxes to lower the burden on homeowners, Xu said.
Contact reporter Pan Che (email@example.com)
Dec 14 04:16
Dec 14 04:48
Dec 13 16:21
Dec 13 14:30
Dec 13 14:18
Dec 13 14:43
Dec 13 11:37
Dec 13 10:13
Dec 13 06:16
Dec 13 04:49
Dec 12 18:46
Dec 12 16:47
Dec 12 14:15
Dec 12 14:13
Dec 12 14:37
- 1JD.com’s Richard Liu Steps Down From Key Positions, but Retains Control
- 2In Depth: How the Queen of Gree Won, Again
- 3Another Local Government Financing Vehicle Fails to Pay Bond Interest
- 4China’s Curing Cancer Faster and Cheaper Than Anywhere Else
- 5 In Depth: China’s Private Sector Support Comes at a Cost
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas