Some 8 months after the Chongqing city introduced property taxes on upscale residential property the government now adds a list of new criterias for being elegtible to property tax, herunder villas, appartments owned by none residents when ownning more than 1, and an inclusion of all upscale property, not only newly purchaceed which the original tax targeted.
The new tax is at 0.5%, 1% or 1.2% depending on the purchace price of the property, and will only affect the 9 districts in Chongqing city itself.
The tax regulations is considered to be a government incentative to increase revenue and is not related to the recent concerns about inflatation in property prices, where Chongqing in june had the questionable honor of having the number one spot in whole China with a dazzling 6% increase from the month before, which temporarely made the government cease all property bank loans.
China Daily reports that the tax limit falls on appartments with a sqm price higher than 9,941 yuan, for whoom the 0.5% tax will apply, while more expensive property can be subject to the 1 or 1.2%. The number of property falling in this range was before january accumulated to 3.400 units, but the number is exptected to increase dramatically since prices on new property have been soaring.
It is also noted that owners not paying the tax will face public exposure and perhabs limits on their ability to travell abroad.
Article was updated the 28/8.