BEIJING — China is closer than ever to taxing property owners, analysts say, nearly two decades after authorities began floating the idea.
What's changed is that Chinese President Xi Jinping now has the political momentum to get the ball rolling on property tax, analysts said. This summer, Xi has emphasized authorities' commitment to delivering "common prosperity," or moderate wealth for all, rather than just a few.
And in an essay earlier this month detailing what common prosperity means, Xi called for regulating excessively high incomes, with measures such as tests of a property tax.
On Saturday, the top executive body, the State Council, was authorized to conduct such a test for five years in unspecified regions. These developments follow years of trying to limit speculation in China's property market, which accounts for the bulk of household wealth.