There are still many difficulties in the full levy of real estate tax. The industry says it is most likely to pilot first.

Publié: Oct 16, 2021 12:58 (GMT+8)
In the section on strengthening the regulation and regulation of high income, the article "solid Promotion of Common Prosperity" points out that while protecting legitimate income in accordance with the law, it is necessary to prevent polarization and eliminate unfair distribution. It is necessary to rationally regulate excessive income, improve the personal income tax system, and standardize the management of capital income. It is necessary to increase the intensity of tax regulation in consumption links and study to expand the scope of consumption tax collection.

The 20th issue of Qiushi magazine published an important article by President Xi Jinping entitled "promoting Common Prosperity in a down-to-earth manner". In the section of strengthening the regulation and regulation of high income, the article points out that it is necessary to actively and steadily promote the legislation and reform of real estate tax and do a good job in the pilot work.

This is not the first time a signal has been released this year. On May 11 this year, the Ministry of Finance made public a pilot forum on real estate tax reform for the first time. Industry experts said that "actively and steadily promote real estate tax legislation and reform" has always been a saying, from the expression of "do a good job in the pilot work", it can be expected that there will be a corresponding plan to land in the pilot cities within a relatively quick period of time.

Experts also said that the real estate tax is most likely to be promoted in a pilot way, and there is a greater probability that it will be a pilot project of authorization. Another expert pointed out that the complexity of the real estate tax has not been officially launched so far, and there are many difficulties in levying the tax in an all-round way. In addition, the article "solid Promotion of Common Prosperity" also mentions tax reform and legislation from the perspective of common prosperity, and experts predict that some corresponding policies will be introduced in a relatively short period of time.

Real estate tax is most likely to pilot first or speed up landing in pilot cities.

With regard to the expression of "actively promoting the legislation and reform of real estate tax and promoting the pilot work", Wang Huayu, deputy director of the Finance and Taxation Law Research Center of Shanghai Jiaotong University, said that "actively and steadily promoting real estate legislation and reform" has always been said. From the expression of "promoting the pilot work", one kind of understanding is to redesign the system on the basis of the existing Shanghai and Chongqing, and it is more likely to add new pilot cities to do related work. "I believe that in a relatively fast period of time, there should be a corresponding plan to land in the pilot cities."

Wang Huayu said, "it can be expected that real estate will be promoted in the first pilot way, and it should be accelerated, and there is a greater probability that it will be authorized to do a pilot project." It is possible whether the specific form is to formulate a real estate tax law, or for the State Council to adopt a new pilot scheme locally in accordance with the provisions of authorized legislation. "

First, from the perspective of legislative experience, the pilot project is a very important experience of national tax legislation. Taxes involve all aspects, and we need to sum up experience on a pilot basis to keep the impact of tax reform within a controllable range. Second, from the characteristics of taxes, real estate tax as a real estate tax for real estate has immovable characteristics, so the pilot can be controlled in a specific area. Third, from the attribute of tax, real estate tax is a local tax, which is closely related to local tax reform. Therefore, Wang Huayu said that there will be a pilot policy intention in it.

There are many difficulties in levying real estate tax in an all-round way.

Lin Jiang, a professor in the Department of Economics at Lingnan College of Sun Yat-sen University, said that real estate tax is an important part of property tax. Since the property tax was proposed, it has been almost 20 years since the real estate tax was levied as an issue, and there has been no obvious progress.

This is mainly because, first, the introduction of a real estate tax, to consider whether to have some inestimable impact on housing prices and the real estate market. Second, China already has a lot of real estate-related taxes, such as land value-added tax, property value-added tax, land transfer fee is also a kind of actual tax, land and real estate are related. If a real estate tax is to be introduced, it is necessary to consider that some taxes may have to be merged. Shanghai and Chongqing are pilot projects for the reform of the way of levying property tax. if a real estate tax is levied, it is also a question whether the property tax will be merged, retained or abolished.

Lin Jiang also said that the complexity of the real estate tax has not yet been officially launched. If the problem is not well considered, it would be better to postpone it for a while and think it over.

Lin Jiang said that first, if a real estate tax is levied, it will include two tax bases, land and real estate, and it is necessary to give a legal explanation to taxpayers, but this is a difficult issue. The second is whether the real estate tax has retrospective effect and whether the new real estate tax has the consideration of repeated taxation, which has an impact on fairness. The third is how to determine that the tax rate will not increase the burden on taxpayers. Fourth, it also has a certain impact on the local government. If the real estate tax is completely owned by the local government and the earmarked funds are limited, it may weaken the autonomy of the local government in terms of financial capacity, and it will also have an impact in practice.

At the tax level, it is expected that there will be corresponding policies to promote income distribution in a short time.

In addition, in the section on strengthening the regulation and regulation of high income, the article "solid Promotion of Common Prosperity" also points out that while protecting legitimate income in accordance with the law, it is necessary to prevent polarization and eliminate unfair distribution. It is necessary to rationally regulate excessive income, improve the personal income tax system, and standardize the management of capital income. It is necessary to increase the intensity of tax regulation in consumption links and study to expand the scope of consumption tax collection.

Wang Huayu said that regulating the management of capital income has not been put forward separately as a key point in the past, and for capital income in the future, some new policies or legislative changes may be introduced in the setting of the tax system or in tax collection and administration. The appropriate adjustment of the tax system elements or the intensity of collection and management of non-labor income property or capital income will help to promote common prosperity, better regulate income distribution and achieve social equity.

With regard to the reform of consumption tax, one step is to move backward, and the other is to appropriately expand the scope of consumption tax collection. Wang Huayu said that the fairness of the tax system is reflected in the consumption link, which is consistent with the policy intention of moving the collection link backward mentioned in the central document. To expand the scope of consumption tax collection, it can be understood that some specific consumer goods that are luxurious consumption, high energy consumption, not conducive to ecological and environmental protection, or reflect the need for economic and social policies to be adjusted, may have to be expanded, or some consumer behavior may be included in the scope of consumption tax legislation.

Wang Huayu also pointed out that all these items are directly related to common prosperity and the promotion of income distribution, especially the later preferential policies on philanthropy, emphasizing the national level of the third distribution, or the encouragement and support at the tax level. The article talks more about tax reform and legislation from the perspective of common prosperity, and predicts that there will be some corresponding policies in a relatively short period of time.

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