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Nationwide property tax mulled for houses and land  

2014-08-25 07:15:12|  分类: 默认分类 |  标签: |举报 |字号 订阅

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China is likely to introduce a nationwide property tax as early as next year following trials in Chongqing and Shanghai, an official at China's top legislative body said.

The National People's Congress, the top legislature, is drafting a property tax law that is expected to wrap up later this year and be imposed in 2015, said the official from the NPC, who asked for anonymity due to the sensitivity of the issue.

Unlike the trials in Chongqing and Shanghai, where the property tax is levied on houses only, the planned national property tax will target houses and land.

"The method of taxation is still under discussion and is subject to changes," the official said, adding that the NPC is also soliciting opinions from experts and tax authorities

Specifically, the ratio of the tax has not been decided, nor is whether the tax will be levied on newly built properties or on properties already owned.

The new tax will combine several existing taxes, including a land tax on property developers, a tax for occupying arable land and a tax for house transactions.

Last year the Third Plenary Session, the top annual meeting of the Communist Party of China, pledged to quicken the enactment of a real estate tax as part of broad reform.

It also required hastening the enactment of tax laws to improve the legitimacy of tax collection.

China started to levy property taxes in Chongqing and Shanghai in 2011 as pilot projects. In Shanghai, if a family has a home of more than 60 square meters per person, it will be taxed at a rate of 0.4 percent to 0.6 percent of the total property price annually. In Chongqing, the trial tax is focused more on taming investment speculation on villas and high-end properties, with the rate set between 0.5 percent and 1.2 percent of the property price annually.

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