China has released a series of tax measures to help revive its struggling property market, the state media reported
The Ministry of Finance, in collaboration with other government bodies, announced that deed tax incentives for housing transactions would be increased to better support both basic and improved housing needs. These changes are part of efforts to stimulate growth in the country's real estate sector, which has long been a key driver of the economy.
The property sector has traditionally accounted for about a quarter of China’s gross domestic product. However, after years of rapid growth, the market has faced a prolonged downturn, hindering overall economic expansion. Authorities are now aiming for a growth target of around five percent for 2024.
In a move to support the sector further, the Chinese government pledged in October to make more than $500 billion available in credit for unfinished housing projects. Along with these financial measures, Beijing has recently introduced a range of policies, including interest rate cuts and the relaxation of some home purchasing restrictions, to spur economic activity.
The new tax incentives, cited by China Central Television (CCTV), include enhanced deed tax policies aimed at supporting housing transactions. The announcement also includes a reduction in the minimum prepayment rate for land value-added tax, which is intended to ease the financial burden on real estate companies.
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