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    Use Land Tax Instead Of Land Use Fee

    2012/3/5 10:33:00 17

    Property TaxLand UseProperty Market

    The property market is still one of the hotspots of this year's "two sessions", and after experiencing the most stringent housing market regulation in history, China's

    Real estate regulation

    Will it continue to "overweight"? Whether the property tax that has been pilot in Shanghai and Chongqing will be extended to the whole country?


    At the NPC and CPPCC sessions, a proposal submitted by the National Federation of industry and Commerce made it clear that we should speed up the reform of the land leasing system and timely introduce the property tax.


    According to the proposal, 90% of the national revenue comes from tax revenue, and only 10% comes from non tax revenue. However, this situation is "lost" in the local government. Especially since the new century, the characteristics of the land finance of the local governments are becoming more and more obvious.


    A research report from the State Council Research Center shows that the share of land sales income in local fiscal revenue increased from 9.2% to 48.8% in 2009 and more than 70% in 2010.


    The National Federation of industry and Commerce believes that this kind of land is not a tax revenue.

    Local finance

    The status of absolute leading role can easily lead to instability of local government revenue.


    The premium of land leasing in the source of local government revenue has also become the main reason for pushing up housing prices.

    The National Federation of industry and Commerce believes that under the enormous pressure of financial expenditure such as guaranteeing development and protecting people's livelihood, local governments tend to push land prices through land "auction and hang up" so as to obtain the largest land revenue to increase revenue, and housing prices are also high.


    The National Federation of industry and Commerce has suggested that if this situation is maintained, it will overdraw China's future development momentum.


    "The land leasing system in our country is the" annual rent system "for land pfer, that is, the government can collect the land leasing fees for the next 70 years (residential land) at once. This system enables the government to obtain huge amounts of funds through land pfer in the short term, but it is" eating the grain "and overdraft the driving force for the future economic development, which is not conducive to the sustainable development of the economy in the long run.

    Proposal analysis said.


    The real estate tax is a property tax imposed on the stock houses, which is implemented in the custody link. First, it helps regulate the distribution. Two, it can reasonably guide consumption. Three, it is conducive to the establishment of a stable income source for local governments.

    According to the National Federation of industry and commerce, if all the stock residences are taxed, the scale of Taxation will continue to replace land leasing.


    However, not all members agreed to levy property tax.

    Zong Qinghou, chairman of the National People's Congress and chairman of the Hangzhou Wahaha Group, told the first financial daily that at present, housing prices have been very high, and buyers have paid a considerable price to buy houses.


    Wang Yuqing, deputy director of the Executive Committee of the Federation of real estate associations of the National Federation of industry and commerce, also believes that if the property tax is introduced in the whole country, if the current policy has not been considered for a period of 70 years, the land leasing fee will be repeated.


    Therefore,

    Property tax

    It is necessary to reform the land pfer system.

    Wang Yuqing believes that the removal of all the land leasing fees will be a disaster for the local finance that undertakes local development and livelihood. Therefore, the best way to reform is to gradually replace land use fees into property taxes instead of one step at a time.

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