China's Xi Jinping faces resistance over nationwide property tax: report

Xi Jinping speaks at a meeting of the 150th anniversary of the Revolution of Xinhai during the Great Hall of People in Beijing, China on October 9, 2021. Oct 19 Reuters - Beijing President Xi Jinping is facing resistance over a nationwide property tax aimed at curbing housing speculation, the Wall Street Journal reported on Tuesday citing people with knowledge of government deliberations.

Earlier this year, Xi assigned Han Zheng, the most senior of China's four vice-premiers, with the task of rolling out the levy much more broadly according to the report.

However, Beijing is now settling for a limited tax plan because of strong pushback, while a proposal involving state-provided affordable housing is emerging as an alternative, the WSJ reported.

An initial proposal to test run the tax in around 30 cities has been scaled back to around 10, the report said.

In an essay in the ruling Communist Party journal Xiushi, published Friday by the official Xinhua news agency, Xi had called for China to vigorously and steadily advance legislation for a property tax.

China has mulled such tax for over a decade but faced resistance from stakeholders, including local governments themselves, who fear it would erode property values or trigger a market sell-off.

In internal debates, the feedback to Xi's property tax plan from both the party elites and its rank-and-file members has been negative, the WSJ report said, citing those familiar with the deliberations.