Land Value-added Tax To Liquidate The Real Estate Market

In recently years, the rapid growth of residence field, the rapid increase of per capita living space in town, the rapid upgrading and updating of residence community has brought a great effect of domestic demand of national economy. But from 2003 to now, the investment of real estate keeps in a rapid growth path, the price of the commercial residential building still keeps growing, the growth rate of 2003 is 3.4%, 5% in 2004,9% in 2005,7.7%in 2006, the price of commercial residential building in some cities and areas keeps 20% growth rate, that has been beyond the purchasing power of the ordinarily resident, and the price has been the nerve-wracking economy problem of government. The adjust and control of the price of commercial residential building is now the focus of all the people. The government has adopted some measures, but not in a obvious result. So, to come into practice a powerful adjust and control measure is now in extremely urgent. On 28th December, 2006, State Council officially signed and issued the notice of the management of real estate companies land value increment tax liquidation, which was published by Department of National Revenue.Against this background, this article draw the conclusion from the market structure, enterprise activity, executive performance and other factors to analysis the influence to real estate due to the land value increment tax liquidation: in a long time, real estate enterprise will transfer the t tax bearing to the consumers, the commercial residential building price will keep growing, and will change the existing market structure.land value increment tax liquidation is a double-edged sword. In a qualified sense, it can hold back or within limits the diversion and sensationalization to decrease the risk of distending the real estate marketing foam, it also can press the exorbitant profit of real estate companies, and it is good to improve the supplement structure of commercial residential buildings and etc. This is the positive meaning. But land value increment tax liquidation has increased the price of residential building is an established fact, and this is the negative meaning.Land value increment tax liquidation can not solve all the problems in the real estate marketing, in the end of this article supplies some what-if analysis of the property tax imposing, and with land value increment tax , they will become the powerful measure to adjust and control the real estate marketing. Meanwhile, the government should still carry out the scientific macroscopic readjustment and control policies to advance in sustained, rapid and sound development of the real estate, and realize the development guidelines of the government economy. The real estate industry is the mainstay industry and the consume hotspot in this period in China, we should not only solve the protrusive problems unalterable in the development period of real estate, but also advance this industry to develop stably.