Business     

Chongqing tweaks tax on luxury properties

Shanghai Daily, January 11, 2013

• Chongqing has levied a property tax on new residential properties priced at more than 12,779 yuan (US$2,028) per square meter since January 1, the city's housing watchdog said Thursday.

  The threshold before the tax was imposed was 12,152 yuan per square meter last year.

  Chongqing is one of two cities on China's mainland that has implemented a property tax trial since early 2011 as part of the central government's efforts to rein in housing speculation and cool the overheated property market.

  Chongqing's tax only targets luxury properties with a rate of between 0.5 and 1.2 percent.

  Luxury properties refer to stand-alone villas and residential developments which cost double the city's average new home price registered over the past two years.

  Shanghai's property tax targets newly-purchased homes by families who already have one or more homes at a rate of either 0.6 percent or 0.4 percent depending on the house price.

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