The National People's Congress Standing Committee has approved the latest plan to promote “rational housing consumption”. This comes with President Xi Jinping pushing for more “common prosperity” in China, aimed at spreading wealth more evenly. China is set to expand pilot property tax reforms as the government battles real estate speculation in the world's second-biggest economy. Under the five-year pilot scheme, property tax will be levied on all types of real estate, excluding some rural homes. Some analysts believe, however, the latest tax move is aimed at preventing prices from rebounding to earlier levels. Mark Williams of Capital Economics said the chances of a national tax being implemented are much higher now. He said that opposition to the tax from insiders was not new given that the correlation between Communist Party membership and ownership of multiple properties is “probably fairly high”.
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