Property taxation in Mainland will soon become materialized. The aim of its implementation is to balance the supply and demand in the property market and to stabilize the housing market. Such introduction will provide the local governments with a reliable alternative to ease financial pressures and benefit local government development and social economic growth in the long run. In addition, property taxation could also help to reallocate income distribution. However, we should never overestimate the positive impact it will bring to the market as the pressure of property taxation will weigh on the middle class while the existing tax burden remains heavy. For local governments in Mainland, strong reliance on revenues from land is the undeniable source of the problem. If local governments ignore such problem, the introduction of property taxation is most likely to become an empty talk after a high-profile campaign.
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