At this year’s annual National People’s Congress in Beijing, senior officials said work on a draft for the tax was “steadily advancing.”
Authorities also announced that local governments would have autonomy over the actual rate of the tax in order to minimize its effect on house prices.
Soho’s Zhang, however, argued that the tax could hurt the country’s already-slowing economy.
Property-related industries, such as the steel and cement sectors, account for about 35 percent of the economy, according to Zhang. As a result, implementing the new tax would have a “huge impact” on both the real estate market and the wider economy, she said.
“I doubt … this time would be the right time to introduce the property tax, knowing that they’ve already eased the credit to boost the economy,” she said.
“If this sector gets taxed regularly, repeated and heavily,” Zhang said, “it will surely have a strong impact.”