Necessity And Countermeasures Of China's Property Tax Levy

The healthy development of real estate is the pivot for the stable growth of the national economy. Reasonable system of the real estate tax is largely influenced the healthy development of the industry. Since 1994 the real estate tax policy of mainland is basically unchanged, There are many defects, and It has significantly lagged behind the growth of the real estate market. It is put forward that we should implement the reform in real estate tax and Impose uniform, standard property tax when conditions are ripe for real estate in towns and cities, in the same time we should cancel the corresponding charges. It is decided by communist party in the Third Plenary Session of the Sixteenth Central Committee in 2003. This is firstly appeared for property tax in the official document. It has big effect quickly. Then academia and the community pay Special attention to the property tax. Recently the state council approved the Development and Reform Commission raised the property tax issue to the work plan of Development and Reform Commission in the notification about the work of deepening economic restructuring in 2009.Whether or not to impose the property tax and how to impose it ? There is currently in the run-up.By comparative analysis, we know that the tax system of real estate is so complicated, and there are some serious problems and defects with it.In the Holding and circulation of real estate, there is an unbalanced phenomenon showing that "heavy flow, light to maintain" , which deformed the configuration of resources. Particularly in maintain of the real estate, the taxes that having some features of property taxes is too low. It cannot fully play the function of distribution and resource allocation of tax income, and not ensure the sources of local government revenue. Currently we are placing the land leasing system that Government charge exorbitant land transfer at one time. In 2009, the land transfer payment is soaring, making the land revenue focused on again. The high cost of land transfer is accounting a high proportion in the development of real estate, which indirectly pushing up the land and house price, disrupting the real estate market. To stabilize the local government revenue, promote the healthy development of the real estate market, we should stick to the principle of that "simple taxation system, broader tax base, low tax rates and stricter tax collection", make sure that"clear rents, correct taxes, clean fees". More important, we'd better implement the land rent system, simplify the taxes and fees in the circulation of real estate, consolidate the taxes of Maintain of real estate, that is to say levy unified property tax based on the value of real estate.