China to Include Shenzhen in Property Tax Expansion Scheme
There will be a possibility for China to include Hangzhou and Shenzhen in its planned property tax expansion scheme that will be implemented this year. Economist and property expert Zheng Ronghua said that the National Development and Reform Commission is the one responsible for the expansion of the new tax scheme that will include cities beyond Chongqing and Shanghai.
Although the exact cities that will implement the tax have not yet been named, the tax is said to be similar to the property tax that is usually levied in other countries and that it is expected to increase the costs of having more than one apartment thus reducing speculation. Shenzhen will pilot the tax program this year since housing prices in the city is high and is growing fast and is attracting number of speculators. And because Shenzhen have a sound housing date it will be easier to implement the tax here.
Prices in Shenzhen increased by 1.8 percent last April with a 1 percentage point slower that in March, and are China’s top legislature chooses Shenzhen to pilot the tax program the city will then carry out the State decision.