”The Shanghai Real Estate Tax Pilot Program is aimed at incremental real estate, to some extent limiting the enthusiasm for new purchases. The practice in Chongqing is that, regardless of the time of purchase, high-end residential and single-family villas are subject to personal housing property tax. Within the scope of the collection, therefore, in the future real estate tax legislation, it is necessary to further consider whether it is for stocks or incremental properties.” Wang Weiqing said.
How to collect it?
Yin Zhongqing, deputy director of the NPC Financial and Economic Committee, said in an exclusive interview with the 21st Century Business Herald that “real estate tax is a local tax, and local governments should have a large autonomy.” Earlier, the Minister of the Ministry of Finance, Xiao Jie, also pointed out that the legislation and implementation of real estate tax will be promoted in accordance with the principle of ”legislation first, full authorization, and step-by-step promotion”. Zhao Xiaoma, executive director of CIC Consulting, told the International Finance News that the reason for the real estate tax ”because of the city policy” is that the different regions of the country have different conditions, the health of the real estate market is different, and the local taxation capacity is also different. Real estate tax can only be gradually promoted by region. There may be differences in taxation standards, tax rate settings and operational details,Mini Electric Scooter Manufacturer in China but considering the overall expropriation framework, Wang Weiqing suggested that real estate tax should set a minimum living area exemption and can be used for two sets or less for self-occupation. The property gives a certain degree of real estate tax exemption policy.
The setting of the tax incentives and exemption regulations was also reflected in the previous property tax imposed on individual residences in Shanghai and Chongqing. Taking Shanghai as an example, if a Shanghai resident family purchases a second or more housing in this city, the total housing construction area of the combined households should not exceed 60 square meters (including 60 square meters), and the newly purchased housing will be temporarily suspended. Exemption from property tax; if the per capita is more than 60 square meters, the property tax shall be calculated according to the regulations for the area exceeding the part of the newly purchased housing. In other words, in the family unit, Shanghai residents can have an area of 60 square meters. In addition, Yan Yuejin, research director of the Yiju Research Center think tank, told reporters that when the real estate tax is levied, the taxes on construction transactions may be abolished, such as deed tax and individual tax. “After taxation on the holding link, it may inhibit the holding cost of multiple-suite holders, which will definitely inhibit the speculators in the property market, but this is only an auxiliary function.” Yang Hongxu said. In Zhao Xiaoma’s view, from the perspective of fiscal and taxation policies, the main purpose of real estate tax levy is to judge the situation of future stocks in the era of housing, ”replace land sales income with real estate tax, and open up new tax sources for local governments”.