China’s government land sales revenue fell 29.5% year-on-year to 792.2 billion yuan in the first two months of 2022, data from the finance ministry showed on Friday, compared with a 2.16% increase in December.
The country’s vast property sector has slumped for months as Beijing’s campaign to reduce high debt levels triggered a liquidity crisis at some major property developers, resulting in bond defaults and projects being shelved or left unfinished.
Fiscal revenue in the first two months of 2022 rose 10.5% from a year earlier, the ministry said.
Fiscal expenditure in January-February rose 7.0% from a year earlier, the ministry said in a statement on its website.
China will cut income tax for some small firms until the end of 2024, it added.
Small firms will be subject to income tax of 20%, effective from the start of 2022, the ministry said in a statement on its website.
- Reuters, with additional editing by George Russell