Jia Kang: Real estate tax “pumping fat and replenishing weight” inhibits the two-level differentiation, and there is a need to expand the pilot

On September 18th, at the 21st Annual Conference of the Boao 21st Century Real Estate Forum, Jia Kang, Dean of the China Academy of New Supply Economics, a researcher at the Chinese Academy of Fiscal Sciences, and Ph. The keynote speech of “Tax Reform”.

Jia Kang pointed out that the differentiation of “ice and fire” is an important feature in the changing trend of China’s real estate market in recent years. The overall economic recovery of all tier cities since 2015 is very obvious. The callback after 2017 is mainly affected by administrative measures. How the “temporary cure” of administrative measures can be connected with the “permanent cure” supported by the basic system to form a long-term mechanism for healthy development. This is the real estate field. The key issue.

In Jia Kang’s view, in the long-term future development, the relevant “basic system construction” will at least involve the land system, the dual-track housing system, the dual-track financial system, and the reform of real estate tax.

Regarding the real estate tax statement, the latest official release originated in May this year. On May 11, responsible comrades of the Ministry of Finance, the Budget Working Committee of the Standing Committee of the National People’s Congress, the Ministry of Housing and Urban-Rural Development, and the State Administration of Taxation hosted a symposium on the pilot real estate tax reform in Beijing. Opinions on reforming the pilot work.

In just over ninety words, no more content was revealed. However, in an article published by China News Weekly on September 7th, experts were quoted as saying that the real estate tax may be piloted before the end of the year, and the tax rate does not exceed 1% of the total price.

In this forum, Jia Kang also expressed his views on real estate tax reform in his speech.

Jia Kang said that the initiation of real estate tax legislation has long been considered in the reform agenda of the decision-making level. The real estate tax reform in the narrow sense at present refers specifically to the taxation of housing ownership, which has been discussed in circles for many years.

“At present, there is the possibility and necessity of real estate tax pilot; on the other hand, after legislation, local governments should also be fully authorized to differentiate between different situations to advance step by step.” . Jia Kang said.

It believes that the reform of real estate tax needs to solve the tough problem of reform on the statutory road. While advancing the legislation, we can also experiment with the expansion measures in parallel, play a rational game, and finally seek the largest common divisor acceptable to the society. At the same time, under the “Chinese characteristics”, the deduction of the “tax-exempt part” needs to be dealt with in the legislation.

Regarding the positive effects that real estate tax should pursue, Jia Kang emphasized that real estate tax must be a comprehensive goal. Negotiate financial resources to help build a local tax system and deepen the reform of the tax-sharing system below the provincial level; the third is to strengthen and optimize redistribution, and “pump fat and lose weight” to suppress the two-level differentiation; fourth, to increase the proportion of direct tax, optimize the macro-control “automatic stabilizer” and reduce The level of social “taxation pain”; fifth is to cultivate and develop a democratized and legalized “standard public choice” mechanism from the bottom up.

Regarding the previous real estate tax pilot projects implemented in Shanghai and Chongqing, Jia Kang also expressed his own views. Innovative awareness, but also mentioned that we should see the valuable contribution of “local testing” to the promotion of reforms on the path of “tax statutory”. He believes that the legislative process of real estate tax may be quite long, and it is possible and necessary to expand the scope of the pilot program. Hainan, Shenzhen and Zhejiang should actively consider joining the pilot program.

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