MOC "promise" to punish local authorities over house prices

(Xinhua)
Updated: 2007-02-06 16:00

It is widely believed the reason why low-income families have limited access to affordable housing is that some local governments rely on the lucrative property industry to bolster their revenues.

Housing prices in 70 major Chinese cities rose an average 5.5 percent last year despite measures being taken in the second half to curb the price hike, including higher taxes on urban land use and depriving local governments of the right to spend the money from land sales.

Beijing was home to the fastest growth in house prices with a rise of 10.4 percent.

Other Sina.com users accused the MOC of trying to pass the buck.

"The ministry has no right to bring a local government to account - it should not shirk responsibility," said a forum user.

The MOC told Xinhua amid growing grumbles that the report was not accurate, saying blaming and demanding an explanation from a local government goes beyond the ministry's authority.

"The problem will not be solved unless the government taxes people possessing more than one apartment heavily, cracks down on speculation on the property market and requires property developers to make their construction costs known to buyers," said another.

All this involves government agencies like the State Administration of Taxation, the National Development and Reform Commission and the MOC to make real efforts to curb the price hike.


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