China’s planned property tax reforms could lift revenues for local governments but would not be sufficient enough to support them unless a large tax is imposed nationwide, according to analysts.To effectively stabilise local fiscal conditions, Zhang Yu, an assistant professor with Peking University’s Guanghua School of Management, estimated that the tax rate needs to be either 0.5 per cent nationwide, or 2.5 per cent with an exemption for those who own one home.But while either of those tax…
Source : South China Morning Post
Read more…Will China’s proposed property tax be big enough to support struggling local governments?
