Friday, January 28, 2011

China introduces first property tax for home buyers

China has introduced its first property tax for home buyers to try to curb record house prices and tame inflation. See full article.

Unlike other countries, specifically the U.S., China does not face growing deficit. It will be interesting to see whether services will increase with increased revenue or if China will save this new income. I believe the latter.

1 comment:

  1. I hope the trial property tax become the first step moving toward a more systematic and sustainable form of local taxation in China, in comparison to generate revenues from public land leasing.