Property tax program not to go nationwide at present: minister
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Han Deyun, a lawyer with Chongqing's Suotong Law Office, held that the property tax should not be expanded nationwide now.
"First, the levy of property taxes will add burdens to common people, who are homeowners; secondly, according to Chinese law, the decision of any tax levy should only be made or authorized by NPC or NPC Standing Committee and the authorized institution has no right to transfer its authorization to other institutions; however the State Council orders pilot cities to launch property taxes, which to some degree ran contrary to the procedures of legislation. Third, the tax's effect to curb house prices must be proved with time, since pilot reforms began only a month ago." Han said.
Huang Qifan, mayor of Chongqing, said on Friday's news conference in Beijing that the property tax wouldn't increase common people's burdens.
"The central and local governments are trying to help low and middle income classes and I think it's impossible and unnecessary to collect property taxes from them."
Wang Xiulin, a CPPCC member, revealed on Saturday that he has presented a proposal to the NPC to improve the legal basis of the property tax.
"The NPC or NPC Standing Committee should quickly authorize local governments to launch pilot tax programs if NPC agrees with the pilot reform of property tax," Wang was quoted by the Beijing News as saying.
Besides property taxation, the Chinese government announced a series of policies to discourage speculation and curb excessive price rises, including higher down payments and lending rates, purchase limits and increased housing supplies.
A government work report delivered by Premier Wen Jiabao on Saturday read that the government aims to genuinely stabilize housing prices and meet reasonable demands of residents for housing. It requests local governments take direct responsibility for stabilizing housing prices and guaranteeing availability of low-income housing.
