Xi looks to mark 3rd term with tax reform for 'common prosperity'

Property and capital gains taxes to distribute wealth as economy matures

Images of Chinese President Xi Jinping at the Museum of the Communist Party of China in Beijing. Xi is expected to start his third term at the party's helm at its twice-a-decade congress in 2022. © Reuters

IORI KAWATE, Nikkei staff writer

November 13, 2021 14:31 JST

BEIJING -- Having all but secured a third term as the Communist Party leader, Chinese President Xi Jinping is set to tackle major tax reforms aimed at realizing his vision of "common prosperity."

In addition to introducing a property tax, the Xi leadership will step up taxation on capital gains and luxury items to redistribute wealth to a wider population. Ahead of the mass retirement of Chinese baby boomers set to start in 2022, pension reform is also seen as imperative.