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SHANGHAI: Shanghai, the most populous city in China, will likely impose a property tax in the first quarter of this year, after getting a go-ahead from the central government, the China Daily said on Tuesday, Jan 11.
Unlike the proposed property tax in the southwestern city of Chongqing, the Shanghai property tax may be directed at all second-home buyers or newly purchased properties whereby floor area exceeds a certain standard, the paper said, citing a source close to decision makers.
The tax rate is expected to be between 0.4% and 0.8%, the paper said, adding that many details have yet to be finalised.
News of an imminent property tax in Shanghai follows months of speculation that China would further clamp down on the country's buoyant housing market by imposing a long-debated property tax, with local media reporting on Monday that Chongqing may introduce the tax as early as this quarter.
China has debated for many years about having a property tax but held back out of fears it may seriously harm the market. — Reuters
Unlike the proposed property tax in the southwestern city of Chongqing, the Shanghai property tax may be directed at all second-home buyers or newly purchased properties whereby floor area exceeds a certain standard, the paper said, citing a source close to decision makers.
The tax rate is expected to be between 0.4% and 0.8%, the paper said, adding that many details have yet to be finalised.
News of an imminent property tax in Shanghai follows months of speculation that China would further clamp down on the country's buoyant housing market by imposing a long-debated property tax, with local media reporting on Monday that Chongqing may introduce the tax as early as this quarter.
China has debated for many years about having a property tax but held back out of fears it may seriously harm the market. — Reuters
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