China accelerates reform "Property Tax" to deal with the "real estate bubble" crisis
Long-established problems in the real estate sector of "China" have erupted into a major crisis from the case of "Evergrande" (Evergrande) that shook the world. reflect the problem China's hidden real estate bubble As a result, the Chinese government has to seriously review the real estate sector. and prepare for major regulatory reforms before the problem escalates
The Financialโปรโมชั่น slotxoTimes reported that on October 23, the past The National People's Congress of China has approved the plan of the Chinese Cabinet. To expand the pilot project to collect the property tax on residential and commercial property. The plan would be a tax on property holdings only in urban areas. does not cover rural households The tax rate and method of tax collection depend on the local government. Initially, a pilot project will be conducted in some areas for a period of 5 years.
The tax collection is a reform of the land and building tax system. This will result in the Chinese government earning more from taxation. Previously, Chinese authorities, especially local governments, had to rely on income from selling or renting land to real estate developers. This leads to problems with speculation and price manipulation.
Earlier in 2011, trials were carried out on residential and commercial tax collections in Shanghai and Chongqing. But it's just an annual fee for owning a second home or more, or a high-priced luxury home.
Capital Economics, a research and business consultancy firm, estimates that if China can impose a 0.7% tax on the country's total residential and commercial property values. This will result in the Chinese government earning 1.8 trillion yuan in 2020, which is more than the 1.6 trillion yuan the Chinese government generates from land sales and leases.
including taxation It will be a price pressure that is not worth speculation. will also reduce the attractiveness of investment in the Chinese real estate sector and transfer more capital to other sectors such as the export sector or the service sector that can stimulate domestic consumption.
The crisis of China's second largest real estate company, “Evergrand” with debts of up to 300 million US dollars. and risk of misleading the debtor It is an important driving force that prompts the Chinese government to urgently reconsider the problems in the real estate sector.