China’s tech hub Shenzhen prime for property tax trial at ‘critical moment’: top adviser
- Yin Zhongli, a senior real estate finance expert advising China’s cabinet, says expanding the trial would bring a new source of revenue for local governments
China should consider expanding its property tax trial to Shenzhen and some low-tier cities, said a senior government adviser, a move that would pave the way for the much-delayed legislation and nationwide implementation and also bring a new source of revenue for debt-ridden local governments.
Shenzhen, which is home to tech giants such as Huawei, Tencent and DJI, would be an ideal choice to explore tackling the local land dilemma, said Yin Zhongli, a senior real estate finance expert at the Chinese Academy of Social Sciences governmental think tank. He was hired as an adviser serving as a counsellor for China’s cabinet, the State Council, two months ago.
Around half of the housing in the southern mainland Chinese city that borders Hong Kong is situated on rural land collectively owned by communities, which restricts property rights and hampers the implementation of property tax, he added.
The suggestion came at a time when municipal and county-level governments are struggling with huge debts and falling revenues from land sales and taxes.
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According to the Ministry of Finance, confirmed debts totalled 42.6 trillion yuan (US$5.97 trillion) as of the end of June, while estimates also put implicit debts in the trillions of yuan.
