The marathon legislative process of the country's property law
finally appeared close to conclusion with legislators planning to
submit it for voting at the next full session of the National
People's Congress (NPC) in March.
If passed, it will be the first law to protect both public and
private ownership.
The draft, discussed yesterday at the 25th session of the NPC's
10th Standing Committee for a record seventh time, emphasizes equal
protection of State, collective and private property. No previous
law has had more than five readings.
As part of the draft civil code, the property bill had its first
reading in 2002 and was withdrawn from the NPC full session in
March amid worries that the draft might undermine the legal
foundation of the socialist system.
However, lawmakers yesterday agreed that the latest draft is
better written and takes into account the concerns of various
parties; and proposed a vote on Friday to decide whether to submit
it to the next NPC full session. There was little opposition during
the debate.
Hu Kangsheng, deputy director of the NPC Law Committee, said the
draft law is "in the correct direction" and is based on ground
realities.
He said the draft, based on the principle of equality, enhanced
protection to State property, reflected the basic policy on rural
issues and safeguarded the basic interests of the public.
"It solves realistic problems that need to be done so urgently,"
Hu said.
The latest version adds new clauses that prohibit illegal
possession, looting, private partition or withholding of State
assets. Similar clauses were also added for collective and private
property.
Committee member Zhu Xiangyuan said worries that the law might
facilitate fraudulent acquisitions and mergers of State assets are
unfounded. He said China is drafting laws on corporations and the
protection of State property to regulate mergers and
acquisitions.
The draft also says farmers can extend their land contracts when
they expire; abolishes the previous ban on city residents buying
rural house sites and leaves the issue to be dealt with by other
laws and regulations such as the Land Management Law.
The committee yesterday also discussed submitting the draft
corporate income tax law to the NPC's next full session; and will
vote on it on Friday.
The law aims to unify corporate income tax rates for domestic
and foreign companies at 25 percent to guarantee a "level playing
field".
Legislators considered the tax rate appropriate and said the
revision should not be delayed as favourable tax policies for
overseas companies discriminate against local enterprises.
Some favourable policies in the draft, such as those for
high-tech companies, investment for environmental protection and
scientific research, and charity donations, would optimize the
investment structure in China and help build a harmonious society,
members said.
(China Daily December 26, 2006)