GALLOPING property prices have been a serious
challenge to the Govt in China. To keep a close watch on the growing real
estate prices, from October 1, 2011, the Govt has imposed property tax
on existing owners of luxury residential properties in Chongqing.
China
had introduced a
pilot property tax project in Shanghai and Chongqing in
January this year as part of the government’s effort to try and bring
under control the rapid increases in real estate prices. Unlike in Shanghai
where the tax is payable only by new buyers, in Chongquing, every owner of
expensive residential properties will be under the tax net.
In addition, while the property tax in Shanghai ranges from 0.4% to 0.6%, Chongqing
charges between 0.5% and 1.2%, depending on the sale value of the property
per square metre.
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