China’s top legislature on Saturday authorized the launch of property tax reforms in some regions.
A standing committee of the National People’s Congress has allowed the State Council to “pilot property tax reforms in certain regions,” state-run news agency Xinhua reported.
“The move aims to advance the property tax legislation and reform in an active and prudent way, guide the rational housing consumption and the economical and intensive use of land resources, and facilitate the steady and sound development of the country’s property market,” read the report.
China’s Finance Ministry and the State Taxation Administration will draft measures and make preparations for the pilot program, it added.
The decision comes in the wake of issues surrounding Chinese real estate developer Evergrande Group, which has $300 billion in liabilities and could default on its debt and cause losses for millions of customers.
However, China’s central bank said on Oct. 15 that Evergrande’s issues are an individual case and that it views the real estate developer’s spillover risks as manageable.
