Land authorities in six Chinese cities including Beijing have
illegally charged 1.1 billion yuan (US$146.7 million) on
enterprises so far this year, adding fuel to the nation's soaring
housing prices.
This was discovered by the National Development and Reform
Commission, China's top planning body, during examinations of
charges on businesses in Beijing, Shijiazhuang, Jinan, Guangzhou,
Chengdu and Xi'an, the Beijing News said Saturday.
The amount was well beyond the total illegal charges collected
by eight departments for the whole year of 2006, said Li Lei, head
of NDRC's Price Supervision Department.
Quoting estimates by the land authorities, which say land costs
account for 20 percent to 50 percent of the housing prices, Li said
the behavior of these authorities has made the runaway housing
prices worse.
Despite rounds after rounds of government curbs including
restrictions on housing ownership by foreigners, housing prices
have rocketed in China over the last few years, to the agony of
ordinary people.
Land authorities are not alone in overcharging enterprises. The
commission found in May that urban construction departments have
overcharged 216 million yuan (US$28.8 million) from construction
firms.
"The illegal charges have added fuel to the rising house price,"
Li said.
The housing prices in 70 large- and medium-sized cities in China
went up by 7.1 percent in June over the same period last year,
according to official statistics.
(Xinhua News Agency July 29, 2007)