Tiered real estate tax rates considered: Finance chief
Updated: 2010-04-01 07:07
(HK Edition)
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The Executive Yuan and local governments have made progress toward a variable tax rate for houses based on value. The new, tiered tax is expected to replace the existing flat rate, "Minister of Finance" Lee Sush-der said Wednesday.
There have been widespread complaints about the current flat rate of 1.2 percent imposed on all residential properties, Lee told the Legislative Yuan's Finance Committee. Once the new system is worked out luxury homes will be taxed at a higher rate than average or middle class homes. Only houses with publicly assessed values of NT$100,000 or under are exempt from the housing tax, according to existing law.
Lee also clarified reports that said "Premier" Wu Den-yih was trying to "hold off" the policy change.
The "premier" was only concerned about the timing of the change, Lee said.
Many people have criticized the flat housing tax rate as inequitable, and a resolution passed by the Executive Yuan's Tax Reform Committee directed the "Finance Ministry" to evaluate ways to adjust housing and land taxes.
Final authority for assessing of housing taxes rests with local governments and any rate change set out at the Executive Yuan must be coordinated with local authorities.
Aside from considering rate changes, some local governments also are considering whether to revise the publicly assessed value of land and houses - which is generally far lower than the market value of the property - under their jurisdiction.
Raising the values could also boost housing tax revenues, but Lee said any revaluation would be the responsibility of local governments.
China Daily/CNA
(HK Edition 04/01/2010 page6)