Tax revenue falls along with home sales in Chinese resort island

Transactional tax revenue in Hainan's housing market plunged 750 million yuan (119 million U.S. dollars), or 16.7 percent, in the first 11 months compared with the same period last year, as home sales in the tropical province are bleak due to central government's policies to curb speculation. The province reported 10.9 billion yuan in property tax revenue between January and November, which accounts for 39.6 percent of its total tax revenue - 27.36 billion yuan, according to statistics from the Financial and Economic Committee under Hainan's provincial People's Congress. The government's plan to transform Hainan, in the South China Sea, into an international tourism destination has helped fuel a surge in the island's home prices and sales last year. However, the housing market slumped after China switched gears earlier this year with policies such as increased deposit requirements to curb speculation.