China’s Ministry of Finance released new statistics today showing that income from state-owned land use rights transfers fell 27.9 percent year on year in the first nine months of 2026, as the prolonged property downturn sharply reduced demand for land.
National government fund budget revenue dropped 18.6 percent over the same period. Central government fund revenue rose 12.4 percent, while local governments’ own fund revenue declined 22.3 percent, with land sale income making up the steepest part of that fall.
Property-related taxes also weakened. Deed tax revenue, which is levied when land or real estate changes hands, fell 14.5 percent year on year.
Land sale revenue has now declined every year since 2022, and this year’s full-year outlook is unlikely to be bright. Local governments have long relied on land finance as a major source of income, and the weak property market has dragged down both the volume and price of land sales. The resulting loss of revenue is adding to the fiscal pressure on local authorities.
Tax revenue, often viewed as a barometer of China’s economy, grew 6.1 percent nationwide in the first nine months. Among the four largest tax categories, domestic value-added tax rose 6 percent, domestic consumption tax fell 4.1 percent, corporate income tax grew 7.1 percent and individual income tax climbed 14.1 percent. Stamp duty on securities trading surged 65.1 percent, boosted by active capital markets.
Li Nan, deputy director of the ministry’s Financial Department, said today that the ministry will prepare policy reserves, focusing on key areas such as household consumption, private investment and improving the balance of supply and demand. It will also strengthen forward-looking research, expand its policy toolbox and continue promoting long-term coordination between fiscal and financial policy.
Source: Central News Agency (Taiwan), October 23, 2026
https://www.cna.com.tw/news/acn/202610230173.aspx