Land Value-Added Tax: Keep or Drop
Li Li?1 Zhou Chong?2?
Abstract: China has been pursuing the policy of land value-added tax over the past decade. The implementation, however, turned out to be unsatisfactory. Since the transaction manner in the primary land market has transformed into public bidding, auction and listed sales in 2001, the distribution of the margin of the added-value land has come to an end ahead of schedule, which can well explain that most of the real estates are still free from the value-added tax. Therefore, the real estate industry is in dispute with the academic circle over the significance of the value-added tax. This thesis has firstly analyzed the value-added tax and then, with the typical real estates in Chengdu and their land value-added tax burden as supported, conducting a descriptive and statistical analysis at both the micro and middle levels. The conclusions and the suggested measures in the thesis can also be supported by data cross the country.
Key words: land value-added tax; land value-added income; land value-added tax burden