Page 248 - 2017 White Paper
P. 248
7 White Paper on the Business Environment in China
However, in an almost about-face, according to a customer complaints due to their propensity to use
report by the Official China Securities Journal, China misleading advertising. The guidelines, released by the
would postpone the expansion of the pilot property tax Ministry of Housing and Urban-Rural Development and
program (Reuters 2013c). According to China Daily, while six other related government departments in August
the State Council , in February 2013, had pledged to 2016, ordered that housing information should be
strictly implement and improve tightening measures on officially verified before being advertised by agencies. The
the housing market in light of faster-than-expected price guidelines also promised to improve credit information
rises in some cities”and that“One of the control directions system in the sector and regulate cooperation between
it named was the expansion of experimental property tax real estate agencies and financial institutions. The move
reforms” and while the Economic Information Daily had is part of government efforts to improve the residential
stated that “Wuhan, Hangzhou and Xiangtan possess sale and rental market, with fake listings and irregular
the basic prerequisites for the launching of such pilots, charges threatening to sully the sector’s reputation
including a tax evaluation system”, the same media report (Xinhua 2016b).
said, “the final expansion list is still subject to decisions
from the State Council and other related authorities”
(South China Morning Post 2013b).
Most recently, in March 2014, The Wall Street Journal
states, Vice Finance Minister Liu Kun declared that while
existing pilots in Shanghai and Chonqqing will continue,
there would be no plans to expand the program to other
cities. Instead, the focus would be on drafting a new
property tax law. The same media states that Premier Li
Keqiang, in his monthly report, said that“the government
wants to accelerate the introduction of a property tax
law”. No timetable, however, was indicated (The Wall
Street Journal 2014).
In early 2016, as the Year of the Monkey was officially
beginning, in an effort to de-stock the overstocked
property market, the Ministry of Finance announced
that China will cut deed and business taxes for home
purchases in most cities. The country made de-stocking
the property inventory glut one of this year’s major
economic tasks.The Ministry of Finance said houses above
90 square meters will be levied a deed tax at 1.5 percent
of the house price for first time buyers in all Chinese cities,
down from 2 percent. For second home purchases, tax
rates will be 1 percent for those under 90 square meters
and 2 percent for larger homes in cities excluding Beijing,
Shanghai, Guangzhou and Shenzhen. Previously the rate
was 3 percent, regardless of floor space. In addition, sales
of houses held for more than 2 years will be exempt from
business tax everywhere except the above-mentioned
metropolises, said the statement (Xinhua 2016a).
Improving Industry Standards: Real
Estate Agencies
Chinese authorities unveiled guidelines to improve
regulations on real estate agencies, a major source of
248
However, in an almost about-face, according to a customer complaints due to their propensity to use
report by the Official China Securities Journal, China misleading advertising. The guidelines, released by the
would postpone the expansion of the pilot property tax Ministry of Housing and Urban-Rural Development and
program (Reuters 2013c). According to China Daily, while six other related government departments in August
the State Council , in February 2013, had pledged to 2016, ordered that housing information should be
strictly implement and improve tightening measures on officially verified before being advertised by agencies. The
the housing market in light of faster-than-expected price guidelines also promised to improve credit information
rises in some cities”and that“One of the control directions system in the sector and regulate cooperation between
it named was the expansion of experimental property tax real estate agencies and financial institutions. The move
reforms” and while the Economic Information Daily had is part of government efforts to improve the residential
stated that “Wuhan, Hangzhou and Xiangtan possess sale and rental market, with fake listings and irregular
the basic prerequisites for the launching of such pilots, charges threatening to sully the sector’s reputation
including a tax evaluation system”, the same media report (Xinhua 2016b).
said, “the final expansion list is still subject to decisions
from the State Council and other related authorities”
(South China Morning Post 2013b).
Most recently, in March 2014, The Wall Street Journal
states, Vice Finance Minister Liu Kun declared that while
existing pilots in Shanghai and Chonqqing will continue,
there would be no plans to expand the program to other
cities. Instead, the focus would be on drafting a new
property tax law. The same media states that Premier Li
Keqiang, in his monthly report, said that“the government
wants to accelerate the introduction of a property tax
law”. No timetable, however, was indicated (The Wall
Street Journal 2014).
In early 2016, as the Year of the Monkey was officially
beginning, in an effort to de-stock the overstocked
property market, the Ministry of Finance announced
that China will cut deed and business taxes for home
purchases in most cities. The country made de-stocking
the property inventory glut one of this year’s major
economic tasks.The Ministry of Finance said houses above
90 square meters will be levied a deed tax at 1.5 percent
of the house price for first time buyers in all Chinese cities,
down from 2 percent. For second home purchases, tax
rates will be 1 percent for those under 90 square meters
and 2 percent for larger homes in cities excluding Beijing,
Shanghai, Guangzhou and Shenzhen. Previously the rate
was 3 percent, regardless of floor space. In addition, sales
of houses held for more than 2 years will be exempt from
business tax everywhere except the above-mentioned
metropolises, said the statement (Xinhua 2016a).
Improving Industry Standards: Real
Estate Agencies
Chinese authorities unveiled guidelines to improve
regulations on real estate agencies, a major source of
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