0 Comment(s)
Print
E-mail China.org.cn, November 25, 2024
TASS:
My question is about the real estate market. What are the considerations of fiscal policy measures in supporting the development of the sector? Thank you.
Lan Fo'an:
I would like to invite Mr. Liao to answer your question.
Liao Min:
Thank you for your question. Real estate is an issue of public concern. The MOF has worked in alignment with relevant departments to focus on promoting a balance between supply and demand in the real estate market, continuously optimizing fiscal and tax policies, promoting China's property market to return to a stable and healthy trajectory.
I will brief you on the policies that have been introduced in three areas: the demand side, the supply side and risk mitigation.
On the demand side, we are mainly working to support people's diverse housing needs and reduce housing costs. This includes the introduction of the phased personal income tax refund policy for "selling old and buying new" housing exchanges. For example, if the existing house is sold for 2 million yuan and the original value was 1 million yuan, the personal income tax payable is about 200,000 yuan, but if you sell it and then purchase another house worth more than 2 million yuan within one year, the personal income tax of 200,000 yuan already paid can be fully refunded. For another example, we have cooperated with relevant departments to cut the loan rates of individual housing provident fund by 0.25 percentage point. It is projected that this policy can save about 20 billion yuan in provident fund personal loan interest payments every year. These two policies have played an important role in reducing the financial burden on homebuyers and increasing housing demand.
On the supply side, we primarily support optimizing the provision of government-subsidized housing as well as securing people's basic livelihoods. Over the past three years, the central government has allocated 212.4 billion yuan in subsidies for government-subsidized housing projects and 280 billion yuan in central government budgetary investments. It has also coordinated local government special bonds to support the development of 6.66 million units of various types of government-subsidized housing that are aimed at meeting the basic housing needs of middle- and low-income urban groups, new urban migrants and young people. Additionally, we have supported the renovation of 160,000 old urban residential compounds, benefiting 27.25 million households, and have helped refurbished 4.2 million housing units in run-down urban areas, and urban villages and other dilapidated urban houses. This has played a crucial role in stabilizing investments, promoting consumption and improving people's livelihoods.
In terms of defusing risks caused by available housing, the MOF has collaborated in releasing the special loan policy for ensuring that overdue housing projects were completed, providing interest subsidies to 350-billion-yuan special loans. Since last year, we have pre-allocated 6.2 billion yuan in interest subsidies to safeguard the legitimate rights of homebuyers. We have also worked to enhance efforts to ensure the timely delivery of homes, to reduce available commodity housing, to leverage idle land and to prevent and mitigate risks in the real estate market, keeping expectations stable.
Regarding our next steps, the third measure that Mr. Lan just mentioned pertains to real estate policy. Moving forward, we will adhere to strictly controlling increase in new projects, optimizing available stock and improving quality. We will actively research and introduce policies that contribute to the stable development of the real estate market. Here, I'd like to share with you all three main considerations that the MOF has in mind:
First, we will allow the use of special bonds with land reserves. This is mainly due to the relatively large amount of idle, undeveloped land across the country. We will support local governments in using special bonds to acquire qualifying idle land reserves. Regions with pressing needs can also use these bonds for new land reserve projects. This policy can adjust the supply-and-demand balance within the land market, reduce idle land, better regulate and control land supply as well as ease liquidity and debt pressures on local governments and real estate companies.
Second, we will support the purchase of available housing to optimize the supply of government-subsidized housing. Considering that there is currently large completed yet unsold housing inventory, we will implement two supporting measures: One is to utilize special bonds to purchase available commercial housing that will be used as government-subsidized housing. The other is to continue using government-subsidized housing subsidy funds. Previously, these funds were primarily used to support new government-subsidized housing projects. Now, we are adjusting the focus by reducing the scale of new construction and supporting local governments in gathering government-subsidized housing sources through the absorption of available homes. These two measures will help reduce the unsold commercial housing inventory, balance supply and demand in the real estate market, and optimize the supply of government-subsidized housing to meet the needs of middle- and low-income groups.
Third, we will promptly optimize and improve relevant tax policies. According to the decisions and arrangements of the CPC Central Committee, we will clarify policies on value-added taxes and land appreciation taxes in line with the scrapping of standards for ordinary and non-ordinary housing. Moving forward, we will work out more policies to enhance support, adjust and optimize tax, and promote the stable and healthy development of the real estate market.
Promoting the stable development of the real estate market is a systematic project that requires the concerted efforts of various policies. In policy implementation, we will continue to strengthen synchronization between fiscal policy and other policies, enhance central-local coordination, and ensure the alignment between new and old policies. By employing a coordinated approach, we will unwaveringly work to stabilize the real estate market and curb further declines.
Thank you all.
Go to Forum >>0 Comment(s)