China has announced a number of tax policies to boost the country's troubled property market, state media reported.
State broadcaster CCTV said tax incentives for housing transactions would be "strengthened to actively support basic and improved housing needs". It cited multiple government agencies, including the Ministry of Finance, AFP reported.
The real estate sector has long been responsible for about a quarter of gross domestic product and has experienced staggering growth for two decades. However, the long-running downturn in housing construction has battered growth. The authorities are targeting a growth rate of around 5% by 2024.
China is trying to shore up the sector, and in October said it would increase available credit for unfinished housing projects to more than $500 billion.
Beijing has announced a host of measures in recent months aimed at stimulating economic activity, including cutting interest rates and easing some restrictions on home purchases.
CCTV stated that the announcement by China's Ministry of Finance, State Tax Bureau and Ministry of Housing and Urban Development was meant to clarify "various tax incentives to support the real estate market."
"The announcement specified that tax incentives for housing transactions will be strengthened to actively support basic and improved housing needs," the media outlet reported. It added that "the minimum prepayment rate of land value-added tax will be reduced to ease the financial difficulties of real estate companies." | BGNES
