At present, China's property tax base is narrow and the scope of collection is not wide. Specifically, the scope of property tax collection is mainly limited to cities and industrial and mining areas. In some urban-rural fringe areas, enterprises in the same street need to pay taxes on one side and not on the other. In addition, the property tax is only levied on the property owned by the enterprise, and other properties are not levied. Property tax is not levied on houses occupied by individuals, even for multiple properties owned by the rich. The object of vehicle and vessel tax collection is mainly limited to vehicles and vessels registered in the vehicle and vessel management department, and no tax is levied on trains, light rails, subways, planes and other means of transportation. Moreover, the vehicle and vessel tax emphasizes the taxation of vehicles and vessels used, rather than those owned, which greatly narrows the tax base.
2. The tax basis is unscientific
The current property tax in China is mainly based on the original value of the property and historical cost, which is seriously out of touch with the market. Especially in recent years, real estate prices have risen sharply. Taxation based on the original value of the property instead of the market value not only greatly reduces the tax revenue, but also violates the principle of fairness. Another basis for collecting property tax is housing rent, but taxpayers may not declare the rent truthfully and it is difficult to collect it. Vehicle and vessel tax is mainly levied on vehicles and vessels in use, and its tax basis is mainly the number of vehicles, deadweight tonnage and net tonnage of vehicles and vessels, ignoring the existing value of vehicles and vessels. Land tax adopts a fixed tax rate. For example, the urban land use tax rate is 0.6- 1 per square meter per year in 30 yuan, which is obviously inconsistent with the increasing land value. With the reform of land system and the opening of land market, the income gap between land and land is becoming more and more prominent. The use of fixed tax rate not only reduces fiscal revenue, but also reduces the effectiveness of optimal allocation of resources.
3. Double taxation and no tax coexist.
The coexistence of double taxation and taxes is manifested in two aspects. On the one hand, taxes are levied on the possession and use of property, and at the same time, a high tax burden is imposed on the circulation of property. For example, there are many fees charged by real estate developers, accounting for almost 30% to 40% of the development cost, resulting in generally high property prices. On the other hand, property taxes of similar nature are levied on the same taxpayer. For example, in China's current property tax, there are two types of land tax: cultivated land occupation tax and urban land use tax. The strangeness of China's property tax system lies in the above-mentioned duplication and the absence of taxes. The most serious vacancy is that property tax, inheritance tax and gift tax have not been collected. Inheritance tax and gift tax are important components of dynamic property tax, and their main functions are to promote income equity and distribution equity. At present, with the disparity between the rich and the poor and the growing high-income class, it is very necessary to levy inheritance tax and gift tax.
4. The tax administration is inefficient.
China implements a tax-sharing system, that is, according to the powers of the central government and local governments, the corresponding financial rights are determined, and all taxes are divided between the central and local governments. For example, consumption tax, customs duty and vehicle purchase tax are collected by the central tax system, while business tax, personal income tax, land use tax, property tax, vehicle and vessel use tax and deed tax are collected by the local tax system. As can be seen from the above classification, property tax is levied by local governments. However, local governments only have the right to collect and manage, but have no legislative power. The right to formulate property tax, the right to interpret it, the right to decide the tax base, the right to adjust tax items and tax rates, and the right to reduce or exempt taxes are all enjoyed by the central government. This is not only difficult to adapt to the regional characteristics of property tax, but also not conducive to mobilizing the enthusiasm of local governments and reducing administrative efficiency. In addition, the imperfect supporting facilities of tax collection and management is also an important reason for low efficiency. At present, China's real estate registration system is very imperfect and lacks comprehensive registration management of taxpayers' real estate. In addition, the cooperation between the real estate management department and the tax department is low, so it is difficult to effectively manage tax sources, and a large number of tax sources are lost.
The tax burden is unfair.
China's real estate tax is scattered in different taxes, and the preferential tax policies are complex.