Property Tax Nationwide Expansion Of Five Year Pilot Cities

The Ministry of finance has agreed in principle that Chongqing levy a property tax on high-grade commercial housing, which undoubtedly confirms the pace of property tax coming. This also makes the Chongqing version. Property tax The pilot project has been given a clearer national significance.

In January 13th, a reporter interviewed a person in charge of a local finance department, and learned that although only two cities in Chongqing and Shanghai are currently conducting pilot projects in real estate tax, the first batch of pilot projects is expected to increase by about two between 2011 and 2012, so as to make a comparison and reference to the policy effect. In the next five years, the framework of the real estate tax applicable to the whole country will gradually mature.

Five year plan for property tax

"According to the central government's plan, there will be a plan of five years or so for the promotion of property tax to the whole country," the reporter learned from the head of a local finance department. "That is to say, from the beginning of the housing tax to the final formulation of a relatively mature and applicable framework for the whole country, it will take about 5 years."

In fact, from March 2010, with real estate market Constant escalation of regulation, the news of property tax, property tax levy pilot everywhere. And the only thing that can be determined is to promote the reform direction of property tax.

In September 29, 2010, when the State Council issued a new round of regulation and control policy, that is, the "five new countries", it explicitly put forward: "accelerate the pilot work of property tax reform and extend it to the whole country." At the end of October, the Central Committee put forward the proposal for the formulation of the 12th Five-Year plan. Real estate tax Reform. "

To this day, the five year plan for the promotion of the real estate tax, though sound grand, is equally deserving of expectations.

The director of the local finance department told reporters that the first stage of the Central Committee's reform on the real estate tax is to establish a relatively feasible framework for property tax collection. And this rule is mainly based on the pilot scheme of property tax in the future as a "blueprint", and the experience of other pilot cities is formulated.

According to reporters, China's real estate tax is mainly concentrated in three links, namely, development links, circulation links and preservation links. The reform of the property tax proposed by the decision-making level is mainly to accelerate the introduction of tax on real estate holding links. At present, only the urban land use tax and the real estate tax imposed on the operating real estate are the main taxes of the link, and the actual levy rate is relatively low.

"In fact, the implementation of property tax reform is very difficult at present." Liu Hongyu, director of the real estate research center of Tsinghua University, said that if the property tax is popularized throughout the country, it will involve the long-term system construction of China's local fiscal and taxation system. The collection of property tax, the scope of tax payable, the tax base and the tax rate need to be repeatedly tested, so it is not overnight.

Those responsible for the local finance department also said that the first batch of pilot cities for property taxes should be more than two Chongqing and Shanghai. During the period from 2011 to 2012, the number of pilot cities is expected to increase to around four. "This is the comparison and reference significance." According to the deployment of the central government, the scheme of property tax collection in the pilot cities will also have different focuses.

Considerations behind the pilot project

Chongqing city "two meetings" held in January 9th, the news that the Chongqing municipal government will strengthen the real estate market financial and tax adjustment, and determine the Levy of high-end commercial housing property tax.

In fact, the news that Chongqing will levy property tax has been "fermented" for a long time, and the mayor of Chongqing, Huang Qifan, is probably the most active local chief executive in property tax reform.

As early as March 2010, the policy of levying property tax in Chongqing was drafted and submitted to the relevant state departments under the auspices of mayor Huang Qifan. Since then, Huang Qifan has made a high profile in the 30 international media such as Agence France-Presse, and Chongqing will levy property tax.

It is reported that the main target of the Chongqing property tax pilot is the "high priced housing" with a price higher than the market average price of 3, with a tax rate of 1%.

According to a reporter from a senior official close to the State Administration of Taxation, Chongqing's property tax pilot is the result of the initiative of the Chongqing municipal government, and Chongqing's collection scheme is mainly formulated by the Chongqing government. Unlike Chongqing, Shanghai is a central city for the pilot project of property tax.

With the "Chongqing version" property tax is about to settle, the "Shanghai version" property tax plan of Shanghai, one of the pilot cities of the real estate tax, is also gradually clear.

Earlier media reports said that the pilot property tax in Shanghai had been approved by the central government in December 9, 2010. At present, the Shanghai development and Reform Commission has launched a pilot study on the real estate tax scheme, and some developers and real estate research institutions in Shanghai have launched research to further improve the detailed rules of the pilot scheme.

According to the reporter, the details of the "Shanghai version" property tax will mainly be adjusted to the increment of housing, and the property tax for the new buyers will exceed 70 square meters per capita, and the real estate tax rate of Shanghai will be roughly 0.5% to 0.6% of the housing price.

The above local financial officials pointed out that from the details of the property tax collection in both places, the plan of the two places can be completely different in terms of object of collection, tax base and tax rate, and "in fact, this reflects the comparison and reference of the central government to different pilot schemes".

Chen Guoqiang, vice president of the China Real Estate Society and director of the Real Estate Research Institute of Peking University, analyzed the pilot projects of Chongqing and Shanghai's property tax collection scheme, which will play an exemplary role in similar cities in the future. Shanghai corresponds to the hot cities such as Beijing and Guangzhou, as well as the relatively high price cities in Southeast China such as Hangzhou, Ningbo, Fuzhou and Xiamen, while Chongqing is comparable with Chengdu, Wuhan and Wuhan.

"Regulation of housing prices is not big."

Although the Levy of property tax has gradually become clearer, the performance of the property market has not been "powerful" since last year, which makes it difficult for the industry to worry about how much housing prices can play a role in housing prices.

"For property market regulation, the details of property tax collection are the key." A person in charge of the development research center of the State Council told reporters.

"From the present point of view, the pilot projects of real estate tax in Chongqing and Shanghai tend to start with a moderate collection scheme, so as not to bring strong stimulation to the market." The person in charge said.

Analysis of the industry, because the real estate market in Chongqing is mainly in the middle and low end housing, therefore, the Chongqing government's plan to collect property tax for high-end commercial housing will not affect the overall Chongqing housing price. For Shanghai, due to the implementation of the restriction order, once the property tax is introduced to new housing, it will also be a process to strengthen the purchase restriction.

The above State Council Development Research Center official said, in fact, the current Chongqing and Shanghai property tax pilot, to the overall real estate market, can play a role in regulating the price of housing is not big, "its national significance is actually in the market's psychological expectations and psychological deterrence."

In January 10th, the property tax pilot "boots" landed in Chongqing, the real estate sector index fell 2.43%., however, the shadow of the decline lasted only one day. In January 12th, the real estate index again led the market, up 1.25%.

According to the insiders, after the new year's day, the real estate sector grew steadily, becoming the most vulnerable sector in the stock market volatility. The property tax pilot in Chongqing after landing, is considered to be less than expected. Most agencies analysis and judgment, from the medium to long term, the introduction of the property tax pilot levy will not cause a great impact on the market, will still be optimistic about the real estate plate market.