THE property tax pilot schemes proposed by the governments of Shanghai and Chongqing had been submitted to the Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development, reported the Chinese-language National Business Daily.
The plans would classify large houses, villas and other types of residential property. Homes would be taxed on the basis of their classification.
According to an industry insider s estimate, the Shanghai property tax would be approximately 0.8 percent.
Nie Meisheng, director of the National Federation of Industry and Commerce and Real Estate Chamber of Commerce, confirmed that the property tax pilot scheme would be launched within a few months.
In Chongqing, the plan included three possible means of taxation: People would either be charged on the number of property units they own, total property area, or a mix of both. The property tax rate was capped at 20 percent, the report said.
According to Xinhua News Agency, the China Securities Regulatory Commission (CSRC) has suspended the approval of restructuring applications from real estate developers. A CSRC insider said that examination and approval for the restructuring applications from real estate developers would be resumed after the launch of related new policies.
According to a Morgan Stanley report yesterday, the odds of a China property tax have risen to above 50 percent while trade protectionism has become likely.
The Special Real Estate Tax could be a variant of the current Real Estate Tax. Its likelihood of being implemented has increased significantly to almost could happen zone [above 50 percent], said the report. The probability of trade protectionism rises by one notch from probable [30-40 percent] to likely [40-50 percent].
(SD-Agencies)
