Shenzhen backed to ‘pioneer’ China’s national tax reform, sets off property alarm bells in Hong Kong
- Ministry of Finance supports Shenzhen to undertake ‘major national tax reform and research’ as part of a plan to improve its fiscal system and debt management
- The development fuelled market speculation in neighbouring Hong Kong, with around 25,000 workers from the city living in Shenzhen
China’s technology hub of Shenzhen has been encouraged to “pioneer” a pilot programme for national tax reform amid Beijing’s renewed push for innovation and common prosperity to tackle inequality.
No further details of the time frame were provided by the Ministry of Finance release on Monday, which was dated last Thursday, but it is viewed as part of a plan to improve the fiscal system and debt management in Shenzhen.
The city of 18 million is seen as China’s frontier of reform and opening, and any changes offer references for possible policy expansion to other regions in the future.
“[We’ll] support Shenzhen to focus on building a high ground for institutional innovation, actively undertaking major national tax reform and research, and continuing to be a vanguard and experimental field of reform,” said the Ministry of Finance.
The finance ministry also supported Shenzhen to leverage tax and fiscal policies to boost medical services, education and meet the high demand for property. Efforts to attract increased capital to boost innovation and research were also outlined in order to enhance its role in the Greater Bay Area.
