Real Estate Tax May Launch With 13th 5-Year Plan

A major theme in Chinese media discussion of the upcoming 5-year plan is tax reform.

Back in July, China Daily: Fiscal, tax system reform essential in China's medium-term plan
Tax reform will focus on the introduction of property tax, adjustment of consumption tax and renovations of individual income tax, according to Ba.

The theme for the tax reform is to "cut indirect taxes" like consumption tax and "add direct ones" such as property tax, said Gao Peiyong, president of the National Academy of Economic Strategy, which is affiliated with the Chinese Academy of Social Sciences.

For the financial relationship of the central and local governments, Gao believes the reform will delegate more power to local government for tax income in order to help them balance income and expenditure.

iFeng: 税制改革或成十三五重点 房地产税很快推出
Currently, the Finance Office, the National Development and Reform Commission, etc., have been passing out some important information "Thirteen Five Year Plan", the core objective of "Thirteen Five" plan is to build a comprehensive well-off society by 2020, gross domestic product (GDP ) and per capita income are better than 2010, "double."

Development is still the top priority. So far, "Thirteen Five" plan economic growth target is 6.5% or 7% uncertain. But the National Development and Reform Commission Xu Lin Planning Division at a meeting in February of this year, said that to achieve eighteen proposed two "double" requirement, the average annual GDP growth rate of "Thirteen Five" period to reach 6.56 %.

"Thirteen Five" members of the National Development Planning Commission of Experts, the President's national conditions, Hu Angang of Tsinghua University Research Institute believes that China's real economic growth rate will be higher than expected basic goal, "Eleventh Five-Year Plan" set at 7.5 percent, "Twelve Five Year Plan "is given 7%," Thirteen Five "or consideration given in" 7% ", about the meaning of plus or minus 0.4 percentage points, which is between 6.6% -7.4%, just within this range, basically can be achieved.

...While promoting reform, tax reform is expected to become one of the key "Thirteen Five Year Plan". The current round of fiscal reform focused on inter-budget management system reform, tax reform and the relationship between central and local government reform three main areas. Ba said the tax reform will be a focus of the reform period "Thirteen Five" aspect, "including real estate tax introduced, as well as changes in the personal income tax reform aspects of the consumption tax."
The first post I did on Li Keqiang was China tax reform. This is the first 5-year plan for the Xi-Li administration and many of the ideas proposed in prior years could end up becoming official policy.

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