Shanghai has slightly lowered the value added tax (VAT) on second-hand home transactions to 5.3% from 5.6% effective March 7.

Several property agencies have confirmed the information, the China Securities Journal reported. It is part of broader efforts of the government’s tax cut measures, not a specific one for the property sector, Zhang Dawei, chief analyst of Centaline Properties said.

The adjustment is moderate as the VAT accounts for only a small part of the total transaction price, he said, adding that it will not create much impact on the property market.

Presently, only those who sell the residential property within two years from the purchase date will have to pay such a VAT tax. The tax cut may benefit a limited number of deals, Zhang noted.