There has never been any kind of tax, such as the real estate tax that affects the nerves of society.
On April 11th, Deputy Minister of Finance Cheng Lihua pointed out at the Boao Forum for Asia that it will further optimize the structure of the taxation system. It is both current and long-term, taking into account the functions of taxation control and raising revenue, gradually optimizing the structure of the tax system, and furthering the value-added tax. Reforms, the construction of a more fair and concise tax system, the promotion of real estate tax legislation and implementation, the establishment of a comprehensive and classified personal income tax system.(Recommended reading>>Official mention of real estate tax at least 6 times in a month Ministry of Finance: Promotion of legislation and implementation)
Since March of this year, this is the sixth official mention of the real estate tax. Compared with the principled statements of previous years, this year’s statement on real estate tax has become more specific.
The reporter learned from people in the industry that the current draft real estate tax law has a general framework and is now soliciting opinions from all localities.
Leading Tax Reform with Legalization of Taxes
It has been nearly eight years since the start of the pilot levy of property taxes in Shanghai and Chongqing in 2011. Observing carefully, it is not difficult to find that, for a long time in the past, official news about real estate tax legislation was rare.
The turning point appeared during the two sessions this year -
On March 4, the spokesman for the First Session of the 13th National People's Congress Zhang Yesui said at the first press conference of the National People's Congress that the real estate tax law draft is being drafted and improved;
On March 5, at the First Session of the 13th National People's Congress, Premier Li Keqiang proposed in the government work report that "we must deepen reform of the fiscal and taxation system," "set up a sound local tax system, and steadily promote real estate tax legislation."
On March 7, Shi Yaobin, Deputy Minister of Finance at the time, disclosed that in accordance with the decision-making and deployment of the Central Committee, the National People's Congress Standing Committee Budget Working Committee, the Ministry of Finance, and other relevant parties are now working hard to draft and improve the real estate tax law draft. The general idea of real estate tax is "legislation first, full authorization, and step by step";
On March 11, the work report of the Standing Committee of the 12th National People's Congress clearly stated that in 2018, it will continue to strengthen legislative work, implement the statutory principles of taxation, and study and formulate the real estate tax law;
On March 25, Minister of Finance Liu Kun stated that the legislation and implementation of real estate tax will be promoted in accordance with the principle of “legislation first, full authorization, and step-by-step advancement”.
For this change, Liu Jianwen, president of the China Finance and Taxation Law Research Association, director of the Financial and Taxation Law Research Center of Peking University and professor at Peking University Law School, felt deeply touched. Analysis of the reasons, Liu Jianwen believes that with multiple backgrounds.
First of all, it is the in-depth progress of comprehensively governing the country according to law. "The real estate tax involves the adjustment of major interests of the public and the private property of the people. This is an inevitable requirement for the implementation of a comprehensive legal administration, and it is also an inherent requirement for the implementation of the statutory principle of taxation," said Liu Jianwen.
Second, it is the fiscal and taxation system reform. The camp reform will start from 2012 and will be fully rolled out in 2016. Business tax was originally a local subject tax, and VAT was a shared tax. After the completion of a business change, although attempts were made to ease the local fiscal revenue predicament through the adjustment of the share of value-added tax, this was a transitional measure after all, but it still needed to explore new levels in the tax system. The main body of taxes. Under this background, how to establish new local subject taxes and how to handle the relationship between the central government and local governments has become a problem that must be resolved.
Finally, the real estate tax has always been a matter of great concern to the society. It involves major interest adjustments. As a government department, the requirements of the rule of law government should respond to such concerns rather than cover them up.
How to understand the principle of "legislation first, full authorization, step by step"
After the party’s 19th National Congress, the thinking on real estate tax legislation became clearer.
Around the real estate tax, the former Minister of Finance Xiao Jie once published a signed article in the “Party Report of the Nineteenth Congress”. He proposed that: “In accordance with the principle of 'legislation first, full authorization, and step-by-step advancement', the promotion of real estate tax legislation and Implementation."
For this principle, Liu Jianwen explained.
First, legislation goes first. Regarding whether the real estate tax is reformed or first legislated, there has been considerable debate. In 2011, Chongqing and Shanghai launched trials to reform the property tax. In 2014, the Fourth Plenary Session of the 18th CPC Central Committee made arrangements for comprehensively governing the country according to law, and clearly speeded up legislation in key areas. The idea of reform after legislation first is clear. This means that the reform of real estate tax must be carried out under the legal framework. Therefore, the first step in legislation is a broad consensus reached in the past few years. This will also help stabilize the expectations of all sectors and maximise the concentration of all. Social consensus and minimizing the disruptive effects that the tax reform may have on certain aspects of the market economy.
Second, full authorization. Our country has a vast territory and varies widely from place to place. The economic conditions, cultural background, and income levels are all different. Therefore, we must give full authorization. Of course, the prerequisite for such authorization is to delegate certain operating systems to the State Council or local governments under the unified legislation of the National People's Congress and its Standing Committee. For example, the tax rate, the central government can set a floating tax rate, and then authorize the local government to formulate local applicable tax rates according to the local conditions, and to exert both the central and local enthusiasm.
Again, step by step. The levy of real estate tax legislation is a major project. The real estate tax is a relatively technical tax and involves many issues. For example, the country’s real estate information must have a unified platform. For another example, a process is required to establish a real estate registration system, a real estate dispute relief system, and so on.
For a long time, the role of the real estate tax has been viewed as mainly by regulating income. In this regard, Liu Jianwen does not agree. “Real estate taxes can indeed play a role in regulating income in the short term. However, the main function of the real estate tax is to organize income, that is, to provide local public goods and public services efficiently, fully and impartially by organizing local fiscal revenues. On the whole, the primary and original functions of taxation are to organize income, and on the basis of stabilizing income, there is room for adjustment.
"Tax anxiety" is a normal phenomenon
How does the real estate tax affecting hundreds of millions of Chinese people? When did you start the levy? How is the real estate market affected? Which people are most affected? It can be said that all along, as long as the real estate tax, it will lead to a lot of "tax anxiety."
"Actually, 'tax anxiety' is a normal phenomenon. It can be said that it is an inevitable reflection of the process of the rule of law in our country, and it is also an inevitable result of people's attention to tax issues in the era of democracy and the rule of law." Liu Jianwen pointed out that this year marks the 40th anniversary of reform and opening up. The biggest change in China in the past 40 years has been the substantial increase in the total amount of social wealth, which has also brought about the increase in the wealth of millions of households. For many people, family property is mainly embodied in real estate. Therefore, the real estate tax becomes the focus and it is not difficult to understand.
Liu Jianwen pointed out that at present, the real estate tax is no longer a question of whether or not to levy, but how to levy the issue is how to better deal with national and personal interests. For real estate taxation, China has already done a lot of fruitful work. What we need now is constantly summing up, improving, and improving.
Liu Jianwen further pointed out that the scope of expropriation of real estate tax and the scope of exemption, whether it is levied according to area or in accordance with the number of sets, are the key points to be resolved in the next step of legislation. How to handle the relationship between different taxpayers, the relationship between the central government and the local government, and the relationship between the legislature and the executive authorities are the difficulties in real estate tax levy legislation.