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BIZCHINA> Top Biz News
Tax on property transactions may be reduced soon
By Hu Yuanyuan (chinadaily.com.cn)
Updated: 2008-12-11 16:17

The government may soon cut the level of business tax and income tax levied on property transactions to further activate the real estate market, an industry insider said.

Special Coverage:
Housing in China

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In the recently concluded Central Economic Work Conference, policymakers promised to increase the supply of low-cost housing to ease people's economic burden on home purchase for their own use.

According to Yang Shaofeng, managing director of Beijing-based property broker Conworld, property deed tax, business tax and income tax have been a major economic burden for home buyers, a burden that is even more obvious in deals involving pre-owned houses.

"The Ministry of Finance, State Administration of Taxation and the Ministry of Housing and Urban-Rural Development may significantly reduce these taxes very soon," Yang said.

"The move will not only trigger home buyers' demand but also help boost property developers' profit and thus make it easier for them to go through the market correction," he added.

According to the National Development and Reform Commission (NDRC), property prices in 70 major Chinese cities rose 0.2 percent from a year earlier. The growth rate was 1.4 percentage points lower than October and was the lowest recorded rate since the NDRC started publishing the figure in July, 2005.


(For more biz stories, please visit Industries)

 

 

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