China announces tax policies to boost property market: state media

BEIJING: China announced a series of tax policies on Wednesday aimed at boosting the country's struggling property market, state media reported.

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, which has long accounted for around a quarter of gross domestic product, experienced significant growth for two decades. However, a prolonged housing slump has impacted growth as authorities aim for a target of around 5% for 2024.

In October, China announced it would boost credit available for unfinished housing projects to more than $500 billion in an effort to support the sector. Beijing has also introduced several measures in recent months to stimulate economic activity, including rate cuts and easing some home purchasing restrictions.

CCTV reported that Wednesday's announcement from China's Ministry of Finance, state tax authority, and the Ministry of Housing and Urban-Rural Development aimed to clarify "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 that "the minimum prepayment rate of land value-added tax will be reduced to ease financial difficulties for real estate companies".

By RSS/AFP