A Study On Property Tax And Taxation Scheme Design In China

In recent years,China's real estate market has been developing rapidly,and the problem of persistently rising house prices has become more and more prominent.After a series of adjustment and control from the authorities,the problem of housing prices is still an important economic and social issue.Due to the relatively excess liquidity in the real economy,there is a large amount of speculative demand in the housing market,which creates a fantasy prosperity in this market and may easily lead to systemic and financial risks.In the social aspect,the speculative income of real estate leads to unfair distribution of income,a widening gap between the rich and the poor,and more intense social contradictions.In order to stabilize the real estate market by functioning the role of government macro-control,China carried out the pilot property tax reform in Shanghai and Chongqing,but the effect is below expectation,and therefore the property tax reform is still on the way.In the first chapter,we study the historical background,purpose and significance of property tax,and survey related literature in this respect.The second chapter appraises the property tax system in China by pointing out its functional orientation,existing problems and possible effects of the pilot property taxation reform in Shanghai and Chongqing.In the third chapter,we conduct a quantitative analysis with an SVAR model to study the impact of property tax on local fiscal revenue,house price,as well as housing supply and demand.Chapter 4 summarizes the mature experience of property taxation measures in selected countries,building on which and combining with the practical development characteristics in China we propose the principles,directions and feasibilities of property taxation reform in China.It is claimed that the property taxation reform in China should be based on the guiding ideology of wide tax base,simplified tax and low tax rate,low tax burden in circulation and high tax rate on incumbent house holdings,with differentiated taxation scheme across different economic development areas and house categories.Chapter 6 concludes the paper by pointing out the shortcomings and possible improvement directions of the paper,and putting forward a couple of necessary measures and relevant policy suggestions for property tax reform in China.By analyzing the existing problems in property taxation system of Shanghai and Chongqing and investigating economic effects of property tax with an SVAR model,we find that the influence of property taxation on housing demand and price is limited,but its impact on housing supply and local tax revenue is statistically significant.Based on the experience of other countries,we design a relatively more reasonable property taxation scheme,whose feasibility analysis results are fairly satisfactory.