China finance minister urges deeper property tax reforms: Report

Chinese finance minister Liu Kun has called for deeper reforms to the country's property tax regime in a bid to strengthen demand-side management and stabilise the real estate market, the state-run Securities Times newspaper reported on Wednesday.
 

China's property market has been a key driver of the country's economic growth, but it has been hit this year by tighter regulations and a liquidity crisis that has put giant debt-ridden developers in jeopardy.
 

A new nationwide property tax has been proposed as part of efforts to curb speculative purchases. China's cabinet, the State Council, is currently deciding which regions will be the first to introduce pilot reforms.
 

Liu, speaking at a parliamentary standing committee meeting, said more work on pilot regional tax reforms was still required before new national legislation was rolled out, the Securities Times reported.
 

The specific pilot policies and locations would be decided in due course and the trial reform period is set to last five years, he was quoted as saying.
 

Liu also said prudence would continue to prevail, with efforts to minimise the negative impact of reforms on poorer rural regions.