China’s Xi calls for progress on property tax in drive for prosperity

TIL Desk/World/Beijing/ China’s President Xi Jinping warned against government over-promising on social welfare amid a push to achieve “common prosperity” by mid-century, while demanding progress on a long-awaited property tax that could help reduce wealth gaps.

China, still an avowedly socialist country, has vowed to reduce inequality after years of breakneck growth while stressing that people should still work hard to create wealth.

In an essay in the ruling Communist Party journal Qiushi, published by the official news agency of China on Friday,  Xi also called for China to “vigorously and steadily advance” legislation for a property tax.

China has mulled such a 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.

Such a tax could curb rampant speculation in the housing market, which is currently under intense global scrutiny as developer China Evergrande Group (3333.HK) struggles with a debt crisis.

Xi also warned against government over-promising on social welfare amid a push to achieve what he called “common prosperity” by mid-century.