China omits property tax from legislative agenda 2021, Real Estate News, ET RealEstate

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BEIJING: China failed to mention a property tax in its 2021 legislative plan on Monday for a second year in a row as the government focuses on stimulating consumption to cement an economic rebound after the COVID-19 pandemic amid continued uncertainty .

The topic was also omitted from government work reports in 2020 and 2021 by Premier Li Keqiang at the annual meeting of Parliament, which set the annual program, although property tax legislation is still slated for release. the future.

“While China’s economic recovery is still under pressure from various uncertainties, including the relaunch of the United States and a resurgence of the epidemic, policymakers are placing greater importance on the stability of the real estate market,” said Lu Wenxi, chief analyst of the real estate agency Centaline.

“Once there are major changes in tax policy, there could be turbulence.”

China’s real estate market quickly picked up steam last year after the coronavirus crisis, providing much-needed support to an economy that has now almost fully recovered to pre-pandemic levels.

“The property tax reform is not so much in line with this year’s theme of expanding domestic demand and stimulating consumption,” said Li Yujia, chief economist at the China Research Institute. Guangdong real estate policy.

“The goal this year is to solve housing problems in big cities, which is more specific.”

The Chinese government and the National People’s Congress said in 2019 that the country will move steadily towards drafting a property tax, which is widely seen as the most powerful tool to deter speculators.

Property tax legislation is still part of the plan for this term of the Standing Committee of the National People’s Congress, whose term ends in 2023, Li said, adding that substantial progress on the issue would be seen over the years. next two years.

The Chinese government said in its development plan for 2021-2025 on Friday that it would push for property tax legislation over the next five years.

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