Property Tax Pilot Will Expand Nationwide, Taxation Official Says

Source: China Securities Journal, ChinaScope Financial (Data)

+       CONG Ming, an official with the State Administration of Taxation, said on September 20 that the scope of the property tax pilot will be expanded further and the real estate tax system will be gradually set up. The property tax pilot is expected to enter more cities at the end of this year or at the beginning of next year, eventually reaching nationwide implementation.

+       CONG pointed out the difference between property tax and real estate tax. Property tax, aiming to enhance housing market control and curb speculation activities, is collected based on the original value of a property. Real estate tax, however, is collected based on the appraised value, which includes the land cost, and is not for market control purpose.

The expansion of the property tax scheme might put additional downward pressure on the property market, although prices and transaction volumes have proven very resilient to controlling policies.

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