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The Ministry of Finance and the State Administration of Taxation have requested that the land occupied by barren hills, woodlands, lakes, etc., within the scope of enterprises that have been exempted from urban land use tax as required, shall be taxable from January 1, 2014 to December 31, 2015. The urban land use tax shall be levied at a reduced amount; from January 1, 2016, the urban land use tax shall be levied in full.
The above-mentioned experts said in an interview with the Great Wisdom News Agency: "These enterprises are mainly concentrated in industrial parks, occupying a large amount of wasteland, grassland and other land. The utilization rate is very low, and it is not necessary to give tax incentives." The expert said that the land was cancelled. The tax incentives are essentially a concrete implementation of the clean-up of regional tax incentives.
The expert also told the Great Wisdom News Agency that the future tax policy will be more focused on specific industries. “The industries that are particularly needed but weaker in the national economy will receive more support,†the expert said. “For example, agriculture, technology and other industries will receive more tax incentives.â€
When Finance Minister Lou Jiwei interpret the "Decision" of the Third Plenary Session of the 18th CPC Central Committee last year, he said that China's tax incentives, especially regional preferential policies, are excessive. Some local governments and fiscal and taxation departments are lax in law enforcement, and tax reductions and exemptions are made in a way that is tax-returned and tax-deductible, creating a “tax-stricken landâ€, which seriously affects the national tax system norms and fair competition in the market, and must vigorously clean up and rectify.
Ministry of Finance: no longer exempting enterprises from urban land use tax
On February 14th, the Ministry of Finance and the State Administration of Taxation issued a notice on Friday to clarify that the urban land use tax for land occupied by enterprises such as barren hills will no longer be exempted. An expert from the Ministry of Finance said in an interview with the Great Wisdom News Agency that the work is a concrete implementation of the work of clearing regional tax incentives. In the future, tax incentives will be more inclined to specific industries.