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The State Council of the People’s Republic of China announced it will expand property taxation to unnamed regions around the nation. Currently, only residential property in Shanghai and Chongqing is subject to a property tax, since 2011.
Historically, China has eschewed the property tax to raise funds. However, President Xi Jinping has sought to implement a property tax under his “common prosperity” reforms. President Xi described his common prosperity reforms in the Chinese Community Party journal Qiushi as an effort to ensure that all Chinese citizens enjoy increased quality of life.
The property tax proposal announced Saturday has met opposition by landowners in wealthy cities such as Guangzhou and Shenzhen. Moreover, it is likely to have an impact on municipalities’ ability to raise funds by selling public land.
Real estate development has been a significant driver of economic growth in China in recent decades. One factor contributing to such growth was the lack of property tax across the country. Experts suggest that the property tax will decrease real estate speculation. Real estate speculation in China has created significant market instability in recent months as leading property developer Evergrande has struggled to pay its debts.
The property tax may significantly impact the savings of ordinary Chinese people, who hold a large proportion of their wealth in apartments and other real property. However, this will have a limited effect in rural areas. The new property tax specifically exempts validly-held rural households.
The post China expands property taxation pilot program appeared first on JURIST - News - Legal News & Commentary.
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Historically, China has eschewed the property tax to raise funds. However, President Xi Jinping has sought to implement a property tax under his “common prosperity” reforms. President Xi described his common prosperity reforms in the Chinese Community Party journal Qiushi as an effort to ensure that all Chinese citizens enjoy increased quality of life.
The property tax proposal announced Saturday has met opposition by landowners in wealthy cities such as Guangzhou and Shenzhen. Moreover, it is likely to have an impact on municipalities’ ability to raise funds by selling public land.
Real estate development has been a significant driver of economic growth in China in recent decades. One factor contributing to such growth was the lack of property tax across the country. Experts suggest that the property tax will decrease real estate speculation. Real estate speculation in China has created significant market instability in recent months as leading property developer Evergrande has struggled to pay its debts.
The property tax may significantly impact the savings of ordinary Chinese people, who hold a large proportion of their wealth in apartments and other real property. However, this will have a limited effect in rural areas. The new property tax specifically exempts validly-held rural households.
The post China expands property taxation pilot program appeared first on JURIST - News - Legal News & Commentary.
Continue reading...
Note: We don't have any responsibilities about this news. Its been posted here by Feed Reader and we had no controls and checking on it. And because News posted here will be deleted automatically after 21 days, threads are closed so that no one spend time to post and discuss here. You can always check the source and discuss in their site.