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Taxing time for land developers

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CHINA signalled the end of its six-month crackdown on the overheated property sector with the inauguration of a high-profile show in Shenzhen yesterday, and simultaneously published a value added-tax law aimed at the staggering profits reaped by developers.

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''It is no longer necessary to worry about the impact of macro control on the property market,'' Vice-Minister of Construction Li Zhendong said at the opening ceremony of the 1993 China Real Estate Exhibition in Shenzhen, the largest expo of its kind in China this year.

In all, 147 developers from around the country are involved in the show, which is organised by the Real Estate Information and Advisory Company under the Ministry of Construction.

''The macro-control measures have brought about positive results several months after they were introduced,'' said Mr Li.

Beijing issued an administrative decree in July to curb the overheated property sector by ordering a halt to unauthorised development zones, luxury residential projects, golf courses and repetitive projects.

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Mr Li said controls had not been placed directly on excessive investments and speculative activities, but prices in the real estate market had fallen after the introduction of the macro controls.

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