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| Over 90 percent of households own at least one home, the central bank said last year. But analysts say the tax will bring in much-needed revenue. A man rides a scooter past apartment highrises that are under construction near the new stadium in Zhengzhou, Henan province, China January 19, 2019. The picture was taken on January 19, 2019. (File photo by=REUTERS/Thomas Peter) |
[Asia News = Reporter Reakkana] SHANGHAI: The official Xinhua news agency reported that the top decision-making body of the Chinese parliament said on Saturday it will roll out a pilot real estate tax in some regions, Reuters reported.
The State Council, or Cabinet, will determine which regions will be involved and other details, Xinhua added. The long-mooted and long-resisted property tax has gained new momentum since President Xi Jinping threw his support behind what experts describe as one of the most profound changes to China's real estate policies in a generation. A tax could help red-hot home prices that have soared more than 2,000 percent since the privatization of the housing market in the 1990s and created an affordability crisis in recent years.
But talk of the plan is coming at a sensitive time, as the property market is showing significant signs of stress and home prices have started falling in tens of cities. The tax will apply to residential and non-residential property as well as land and property owners, but doesn’t apply to legally owned rural land or where residences are built on it, Xinhua said. The pilot schemes will last five years from the issue of the details from the State Council. It has faced resistance from stakeholders including local governments, who fear it would erode property values or trigger a market sell-off.
