Change in land assignment income collection:
reduces room for rent-seeking by developers
■ The Ministry of Finance issued a notice last Friday, which stated that land assignment income will be collected by the tax authorities from 2022 on, instead of the administrative authorities for natural resources.
■ We believe this will strengthen the collection of land assignment income but will not lead to a change in income sharing between central and local governments for now.
■ The new arrangement will reduce the room for rent-seeking by property developers.
■ The main purpose of the change is to better regulate the use of land assignment income and to make sure it is well spent to improve the living of the general public.
■ The views in this note are based on materials prepared by CGS Research.