State counselor proposes cooling China’s housing market

%3CP%3E%3CFONT%20face%3DVerdana%3EA%20number%20of%20high-ranking%20policy%20advisors%20and%20experts%20have%20expressed%20concern%20over%20the%20heating%20of%20the%20Chinese%20property%20market.%20Some%20have%20proposed%20policies%20to%20cool%20it%20down.%3CBR%3E%26nbsp%3B%3CBR%3E%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%20Ren%20Zeping%2C%20chief%20economist%20of%20Founder%20Securities%2C%20pointed%20out%20at%20a%20forum%20on%20Sept.%2021%20that%20bubbles%20have%20recently%20appeared%20in%20China%27s%20housing%20and%20property%20market.%20This%20development%20is%20likely%20due%20to%20low%20interest%20rates%20pushing%20housing%20prices%20and%20land%20value%20sky%20high.%3CBR%3E%26nbsp%3B%3CBR%3E%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%20According%20to%20Qiu%20Baoxing%2C%20State%20Council%20counselor%20and%20previous%20deputy%20minister%20of%20Housing%20and%20Urban-Rural%20Development%2C%20a%20key%20factor%20is%20the%20contradiction%20between%20the%20policies%20enacted%20by%20the%20financial%20departments.%20The%20State%20has%20been%20vigilant%20in%20heating%20the%20housing%20market%2C%20while%20the%20idea%20of%20suppressing%20the%20asset%20bubble%20was%20first%20floated%20at%20a%20conference%20held%20by%20the%20Bureau%20of%20the%20Central%20Committee.%3CBR%3E%26nbsp%3B%3CBR%3E%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%20Qiu%20also%20explained%20that%20he%20has%20submitted%20a%20proposal%20to%20the%20State%20Council%2C%20recommending%20gentle%2C%20dispersive%20and%20decentralized%20adjustment%20policies.%20By%20now%20there%20are%20two%20elements%20influencing%20the%20trends%20of%20property%20market%3A%20taxes%20and%20the%20extension%20of%20property%20ownership.%3CBR%3E%26nbsp%3B%3CBR%3E%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%20Qiu%20proposed%20changing%20housing%20and%20land%20property%20tax%20to%20a%20combined%20tax%2C%20including%20at%20least%20the%20four%20categories%20of%20consumption%20tax%2C%20habitation%20vacancy%20tax%2C%20conveyance%20tax%20and%20property%20tax.%20Moreover%2C%20Qiu%20believes%20the%20establishment%20of%20these%20taxes%20and%20the%20right%20to%20adjust%20credit%20loans%20should%20be%20granted%20to%20local%20governments.%20They%20can%20conduct%20adjustments%20based%20on%20the%20rigid%20demands%20and%20speculation%20of%20the%20local%20market.%20As%20for%20the%20role%20of%20the%20central%20government%2C%20Qiu%20believes%20it%20would%20be%20enough%20to%20simply%20set%20goals%20and%20establish%20an%20accountability%20system%20for%20local%20governments.%3CBR%3E%26nbsp%3B%3CBR%3E%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%26nbsp%3B%20According%20to%20China%27s%20existing%20law%2C%20the%20extension%20of%20ownership%20of%20commercial%20housing%20and%20general%20housing%20is%20required%20after%2040%20and%2070%20years%20respectively.%20According%20to%20Qiu%u2019s%20proposal%2C%20when%20a%20housing%20property%20requires%20an%20extension%2C%20the%20second%20conveyance%20fees%20can%20be%20calculated%20and%20charged%20on%20a%20yearly%20basis%2C%20and%20these%20fees%20can%20be%20automatically%20changed%20into%20the%20housing%20property%20tax.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CBR%3E%28China%20Daily%29%3C/FONT%3E%3C/P%3E