Tuesday, March 13, 2018
Chinese authorities are working on a long-awaited property tax to cool the country's overheated property market, according to a senior government official.
The country will look at real estate taxation regimes in other countries, but will ultimately create a system based on its own unique requirements, Vice Finance Minister Shi Yaobin said at a press briefing in Beijing on March 7 during the annual party meeting.
China has been considering a nationwide real estate tax since 2010 in a bid to cool the real estate market, after easier credit conditions and tax concessions boosted demand and fueled rapidly rising prices. In 2011 pilot property tax schemes were introduced in Shanghai and Chongqing, although these were limited to second homes and luxury properties.
Finance Minister Xiao Ji confirmed plans for a property tax based on "appraisal value" in December 2017, suggesting that it could be launched as early as March 2019.