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China vows to promote stable and healthy property market

China plans to set up a long-term mechanism in the property market, Reuters reports, citing Vice Premier Han Zheng.

“We will steadily implement a pilot scheme under plans for a long-term mechanism to ensure stable and healthy development of the real estate market, and evaluate and track the implementation,” Han told state television on Monday.

The government will stabilize land and property prices and strive to resolve property market risks, Han said but did not give further details.

A “long-term mechanism” for the property market is seen heralding a long-expected property tax.

Work on a draft property tax is “steadily advancing”, senior Chinese parliamentary officials said during the annual session of the National People’s Congress in Beijing last week.

China has been considering a property tax for more than a decade. Analysts say the central government may be accelerating the process now as it just pledged to slash trillions in taxes and fees to spur growth in the economy, and as it enters the third year of a campaign against property speculation.

Such a tax would boost local governments’ coffers as a new source of revenue.

Source: Ejinsight

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