Government gets half of real estate spending

Land purchases and tax accounted for 49.42% of the total spending of real estate companies in nine domestic cities in 2008, reports a speech by the All-China Federation of Industry & Commerce (ACFIC) at the Chinese People’s Political Consultative Conference (CPPCC).

CNNMoney reported land purchases made up 58.2% of direct costs, while tax accounted for 26.06% of total cost, 19.06% of total spending and 14.21% of total sales revenue, said the ACFIC.

In Shanghai, Beijing and Guangzhou, 64.5%, 48.28% and 46.94% of total project sales revenue, respectively, flowed to the government.