China Reduces Property Tax Rates to Support and Stimulate Housing Market

Forex - The Chinese government has implemented a reduction in a significant property tax to boost its struggling economy and revitalize the housing market. The Ministry of Finance announced on Wednesday that the deed tax on first and second homes will be lowered nationwide to as low as 1% as a move to reduce the cost of purchasing homes. According to the finance ministry, the minimum prepayment rate for land value-added tax will also be decreased by 50 basis points. These announcements followed Finance Minister Lan Fo'an's indication at a press conference last week that officials were considering providing tax incentives to support the housing market as part of a broader stimulus package that includes a series of monetary, fiscal, and property easing measures.