China plans to accelerate the introduction of a property tax, reported Bloomberg, citing statements made by Leng Hongzhi, deputy director of the land utilization department at the Ministry of Land and Resources. As property prices rose 10.7% year-on-year in February, a property tax could serve as another valuable tool to curb speculative buying, alleviating upward pressure on housing prices while generating a stable source of local government revenue. Property prices in many Chinese cities exceed the budgets of the majority of Chinese citizens, making housing prices a pressing concern for the government. Simulations to estimate property taxes have already been conducted on a regional basis.
Categories