Govt pondering tax cuts to heal property wounds

The government is likely to cut the business and income tax levied on property transactions to further stimulate the real estate market, according to industry insiders.

Policy makers at the recently concluded Central Economic Work Conference (CEWC) have recommended the construction of more low-cost houses and reducing the tax burden for individual home purchases.

Property deed tax, business tax and income tax are major hurdles for new homebuyers and also in second-hand house deals, said Yang Shaofeng, Managing Director, Conworld, a Beijing-based property broker.