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China’s property tax causing sleepless nights for homeowners as Beijing walks the ‘tightrope’
- China’s property tax plan is part of Xi Jinping’s so-called common prosperity campaign to redistribute wealth and to address widening social inequality
- The plan will not be implemented straight away, with a five year pilot programme set to test the proposal before it is eventually rolled out across the country
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This is the third in a three-part series looking at the potential impact of China’s proposed property tax law.
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Computer programmer Zheng Wenxuan has two flats in Beijing – one for his own family and one for his parents who moved from their hometown in the northeastern province of Heilongjiang.
The 42-year-old spends 25,000 yuan (US$3,900) a month for the combined mortgage payments – a heavy burden for the only breadwinner in the family.
And that financial burden could become heavier with China’s proposed first-of-its-kind property tax set to be piloted in several cities in the near future for five years before being rolled out nationwide.
I’ve had many sleepless nights recently. The Sword of Damocles is hanging over my head
“The market values of my properties have already declined by 10 per cent since the announcement of the new policy. If we have to pay the tax for owning a second apartment, as some speculate, the annual taxation will add to my financial burden,” Zheng said.
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“I’ve had many sleepless nights recently,” Zheng added. “The sword of Damocles is hanging over my head.”
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