Regulators are working on a proposal that would allow megacities, including Shanghai and Beijing, to reduce property taxes by several points.
Written by UNN with reference to Bloomberg.
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China plans to cut taxes on home purchases. The Chinese government is increasing fiscal support to revive its slumping housing market. According to Bloomberg's sources, regulators are working on a proposal that would allow megacities including Shanghai and Beijing to cut home purchase taxes to 1% from the current level of 3%.
The plan underscores Beijing's growing willingness to use fiscal tools to support the sluggish economy along with monetary easing.
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This has already been announced by Finance Minister Lan Foan. Lan pledged to pursue a “more decisive” fiscal policy in 2025 after announcing a 10 trillion yuan ($1.4 trillion) swap of local government debt.
The property tax cuts are expected to revive investors' expectations of a large-scale stimulus to boost domestic demand and fight deflation.