Standing Committee to Include Property Tax Law in Legislation Plans
The National People’s Congress Standing Committee, China’s top legislature will include a Property Tax Law in their legislation plan that will be released this week. According to the 12th NPC plans that the conditions to enact the laws are very favorable and is under review within its tenure that ends on 2018. Based on the plan the property law will be passed by the end of 2017. Although there is no timetable for the implementation of property taxes but is expected to be released on 2020.
The property sector have different taxes ranging from real estate tax which is levied to home owners, land tax on property developers which is created with the aim to regulate the over heated property market. Shanghai and Chongqing property taxes started a pilot basis in 2011 but the extension was suspended due the lack of legal backing. As the real estate market started to cool down in 2014 especially in the lower tier cities and towns
The property sector involves a basket of taxes, including a real estate tax levied on homeowners and a land tax on property developers, created with the aim of regulating the over-heated property market. Some fear that the property taxes might deal the ailing housing market a heavy blow. Although property taxes can assist in curbing speculation and increase the revenue of cash strapped local governments.