PEI XIN

Property Tax First

On January 28, a trial property tax program was launched in the major Chinese cities of Chongqing and Shanghai. It is part of the Central Government's successive moves to cool the rampant property prices since April last year.

In Chongqing, tax will be levied on all villas and any new apartments priced at more than two times the city's average, as well as any second apartments purchased by people who are non-permanent residents and have no investment and jobs in the city. The property tax rate ranges from 0.5 to 1.2 percent. 

In Shanghai, permanent residents will not pay tax on their first home, but any additional homes bought are taxable if the average floor area for each family member surpasses 60 square meters. All new homes purchased by non-permanent residents will be taxed, but the buyers can get all tax refunded for their first new homes after they work in Shanghai for three years. The Shanghai tax rate ranges from 0.4 to 0.6 percent. 

iPad Duty Lowered

Import tax for cameras and IT products like computers dropped to 10 percent from 20 percent since January 27, said the Customs Tariff Commission of the State Council on January 24.  

The IT products stipulated in the announcement include Apple's iconic iPad. The trendy tablet was previously taxed at 20 percent, about $150 for the top of the range model, raising the public's ire. Now under the new regulations the import duty levied on each iPad is between $45 and $73 depending on the model.