China will cut deed and business taxes for home purchases in most of cities to help end the property glut, an official statement said Friday.iFeng: 财政部等三部门发文调整房地产交易环节契税、营业税
The Ministry of Finance said houses above 90 square meters will be levied a deed tax at 1.5 percent of the house value, down from the current 2 percent, for first time buyers in all Chinese cities.
In terms of the second home purchase, tax rates will be 1 percent for those under 90 square meters and 2 percent for larger homes in cities excluding Beijing, Shanghai, Guangzhou and Shenzhen. Previously the rate was 3 percent, regardless of floor space.
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