China on Wednesday announced a raft of tax policies aimed at boosting the country’s ailing property market, state media said.
Citing various government agencies, including the Ministry of Finance, state broadcaster CCTV said deed tax incentives for housing transactions would be “enhanced to actively support basic and improved housing needs”.
The property sector has long accounted for around a quarter of gross domestic product and experienced dazzling growth for two decades, but a years-long housing slump has battered growth as authorities eye a target of around five percent for 2024.
China is trying to shore up the sector, and said in October that it would boost credit available for unfinished housing projects to more than $500 billion.
Beijing has in recent months also announced a slew of measures aimed at boosting economic activity, including rate cuts and the easing of some home purchasing restrictions.
CCTV said Wednesday’s announcement from China’s Ministry of Finance, state tax authority and the Ministry of Housing and Urban-Rural Development was aimed at clarifying “various tax incentives to support the real estate market”.
“The announcement specifies that the deed tax incentives for housing transactions will be enhanced to actively support basic and improved housing needs,” CCTV reported, adding “the minimum prepayment rate of land value-added tax will be reduced to ease financial difficulties for real estate companies”.
Source Homevior.in
