BEIJING – China is closer than ever to the landowners’ tax, analysts say, almost two decades after the plan began to undermine this idea.

What has changed is that China’s president, Xi Jinping, has become more politically active to bring in taxes, analysts say. This summer, Xi reiterated the management’s commitment to providing “common success,” or greater success for all, not just a few.

And in an article earlier this month explaining the meaning of overall success, Xi called for control over higher wages, and practices such as property tax assessments.

On Saturday, the manager, the National Assembly, allowed it to conduct a five-year review of the same in unspecified areas. These developments follow years of efforts to reduce the knowledge base in the Chinese real estate market, in line with the size of the national economy.

“I think the federal government has chosen the right time because of the political changes taking place before the end of the 20th general assembly next year. At home,” Yue said. Su, chief economist at the Institute of Economist Science.

He spoke about the National Council of the Communist Party of China, which is held every five years to show the greatness of the leaders.

Property tax talk since 2003

Unlike the US, China has no property tax. Landowners in China may also be different. For example, state-owned enterprises provide rental housing for their employees.

Chinese officials began negotiating property taxes in 2003, but now only the provinces of Shanghai and Chongqing have banned it, analysts say.

Events in two cities over the past decade have not sparked a heated debate over local governments over property taxes, said Larry Hu, China’s chief economist at Macquarie, in a letter over the weekend.

By 2020, property taxes in Shanghai and Chongqing will be less than 5% of local taxes, and much lower than land sales.

More than 20 percent of local and state revenues come from the sale of the property to real estate agents, according to Moody’s. But if the sale is successful with taxes, it could bring more revenue to the local authorities.

The real estate sector as a construction account accounts for about 25 percent of China’s GDP, according to Moody’s.

The figures show the strength of Chinese retail stores.

China’s integration of the real estate market in 1998 allowed a larger generation to buy more affordable housing, giving them a smaller share of the real estate market than the younger generation, the new generation is aware of. They added that house prices vary widely in the city.

He said: “China’s property tax is not limited to the distribution of wealth from the rich to the poor, but also from the older generation and the more advanced [advanced] people living in the city to others. , ”Said Hu. “As a result, the denial of property taxes is not only widespread but also powerful.”

A tax on wealth

Buildings account for 70 to 80 percent of China’s family income, and account for about 10 percent of household income, Moody’s said.

Property taxes may require the disclosure of business property by landowners, meaning that such a law could be opposed even if it was removed by state corruption.

But a new political system could slow down the process. The gangs began to build the country’s economy with developers like Evergrande relying on credit to develop. Debt management has been the focus of government research for the past 18 months.

In addition, Xi noted in August that pursuing “normal success” in China would require protecting “big” salaries and forcing the rich to return to the region. Later that month, the State Tax Tribunal said it was investigating people who hid their high salaries and evaded taxes.

He said: “The main idea is to revitalize young, happy, middle-aged people with affordable housing and health and affordable education, so residents are happy,” said David Roche, Independent Strategy, president and nationwide. Prime Minister. Monday at “Squawk Box Asia.”

“And to do this you have to make sure that the house is for life – that is, not for technology, or planting,” says Roche. “Therefore, [property tax] is not a requirement for local authorities or local government. Something they have to do because it comes from above, so, it will happen.

Even with the current political system in place, analysts do not anticipate the country’s land tax immediately.

“We believe that Beijing is committed to speeding up the introduction of property taxes, but will continue to move slowly and steadily toward the tax system gradually,” Ting Lu, China’s chief economist for Nomura, said in a letter on Monday.

“But,” he said, “in the hope that rising housing prices will be stabilized in Chinese homes, buying new homes in China may be delayed, Beijing could see problems coming.

Finally, regulators are needed to measure the economics of any event in the Chinese market.

If there is a consolidation of assets, it could delay the introduction of property taxes and increase the ability of people to apply for exemption, said EIU Su.

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