To An Wei, a white-collar migrant worker in Shanghai, China’s tax exemption on house purchase and mortgage deposits reduction are a real stimulus for home buying.
The newly-wed IT worker said, ‘The new policy would not only save me more than RMB4,400 ($644) from the tax reduction in purchasing a 90-square-meter flat in Shanghai and make it earlier to obtain a bank loan to pay for the mortgage, but also give me confidence in the stability of the housing market.’
The Ministry of Finance, the State Administration of Taxation and the People’s Bank of China, the country’s central bank, made the synchronous move on Wednesday to announce a series of new measures to boost the domestic real estate market, which had shown signs of slowing amid the global financial turmoil.
‘The policy is concentrated on tax reduction and relaxing restrictions on financial institutes to give loans to private homebuyers,’ said Nie Meisheng, the Chamber of Real Estate of the All-China Federation of Industry and Commerce director.
The chamber was one of the advisors prompting the promulgation of the policy.
The Ministry of Finance announced on Wednesday to exempt the stamp tax on property purchase and the value-added tax of land on property sales, starting from Nov. 1, to boost the slowing real estate sector.