Research On The Impact Of Land Value-added Tax On Residential Commodity Housing Price

Housing has a special significance for Chinese and is one of the necessary goods for people’s lives,so its price also directly affects the quality of life of Chinese residents.As a pillar industry in China,the real estate industry is prosperous and developing,while housing prices are also rising rapidly,and now the high price of residential commercial housing,the rapid growth rate has seriously affected the happiness of Chinese residents.As a tax levied for the purpose of stabilizing the real estate market and cracking down on land speculation,land value-added tax is a tax levied on the basis of effective regulation and control of the price of residential commercial housing,which will be of great help to improving China’s people’s livelihood and improving people’s living standards.China’s land value-added tax was levied in 1994,and the collection of land value-added tax in the early stage was slow,and it was not until 2007 that the land value-added tax began to grow by liquidation to drive tax revenue,and the collection of land value-added tax was significantly strengthened.In 2019,the Ministry of Finance of the People’s Republic of China and the State Administration of Taxation jointly issued the "Land Value-added Tax Law of the People’s Republic of China(Draft for Comments)" to solicit suggestions from the public,and land value-added tax legislation was officially put on the agenda,combined with the rising current situation of residential commercial housing prices and the clear positioning of "housing instead of speculation" in the "14th Five-Year Plan",this study analyzes the regulatory effect of residential commercial housing prices under the stage of tax revenue growth driven by land value-added tax liquidation,and provides new ideas and suggestions for China’s land value-added tax legislation.This article first aims to clarify the original intention of levying land value-added tax,and reviews the development history and background of the land value-added tax system.By utilizing previous research results and basic theories based on different eras,it systematically sorts out the impact mechanism of land value-added tax on residential commercial housing from three aspects: the regulatory objectives of land value-added tax,macro regulatory mechanism,and tax regulatory mechanism,From a theoretical perspective,it is analyzed that land value-added tax should have a certain inhibitory effect on the rise of residential commodity housing prices.This article first aims to clarify the original intention of levying land value-added tax,and reviews the development history and background of the land value-added tax system.By utilizing previous research results and basic theories based on different eras,it systematically sorts out the impact mechanism of land value-added tax on residential commercial housing from three aspects: the regulatory objectives of land value-added tax,macro regulatory mechanism,and tax regulatory mechanism,From a theoretical perspective,it is analyzed that land value-added tax should have a certain inhibitory effect on the rise of residential commodity housing prices.Subsequently,this article uses statistical data from the past twenty years to conduct a statistical analysis of the rationality of residential commodity housing prices and the collection of land value-added tax from two perspectives.The analysis results indicate that the prices of residential commercial housing in China are too high,and the housing price to income ratio is constantly increasing.The prices of residential commercial housing are currently not within the reasonable range.After the land value-added tax enters the liquidation driven growth stage,although the tax revenue has significantly increased,it has not played its due regulatory role in the process of influencing the prices of residential commercial housing.Subsequently,the article selects panel data from 30 provinces and autonomous regions in China to analyze the effect of land value-added tax on the price of residential commercial housing since 2006.Empirical research shows that land value-added tax does not have good effect in restraining the price of residential commercial housing,and its collection will even become one of the factors driving the price rise.Based on the empirical results,it can be found that there may be tax system defects and lax collection and management in the current land value-added tax.These factors directly or indirectly weaken the regulatory function of land value-added taxFinally,based on the existing problems of land value-added tax,this paper puts forward suggestions for reform and improvement from the two aspects of land value-added tax system and land value-added tax collection and management,and suggests to improve the real estate tax system from the perspective that the regulation and control of residential commercial housing prices requires the joint coordination and cooperation of multiple taxes.