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Reduce land transfer fees
(China Daily)
Updated: 2010-03-15 07:44
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Reduce land transfer fees
If the increase in land transfer fees and administrative charges are shifted to homebuyers, the government should reduce them to ease the burden on the public, says an article in Guangzhou Daily. Excerpts:
Land transfer fees and administrative charges reportedly account for almost half the cost of a house, making local governments one of the largest beneficiaries of the country's over-heated real estate market. It is difficult to regulate the property market because local governments earn almost half their revenue from transfer of land-use rights.
It is hypocritical for local governments to say they are trying to control housing prices while they seek to make as much profit as possible from transfer of land-use rights. The regulators themselves are the biggest hurdle to market regulation. Government officials should respect public opinion and take concrete steps to lower land transfer fees and reduce administrative charges.
It's time the local governments let the fruits of development reach the public, especially because the income gap is widening further. The first step the local governments can take to show their sincerity to a great public cause is to lower land prices.
Since income distribution reform cannot be accomplished in a short period, local governments should set aside a hefty percentage of the profit they make from transfer of land-use rights to build subsidized houses for lower-income groups.
(China Daily 03/15/2010 page9)
