China will exempt urban land used for the construction of affordable housing projects from tax from Oct. 1, the finance ministry said on Thursday.

Affordable housing management firms and buyers will also be exempted from stamp duty from the same date, the ministry said.

A reduced deed tax of 1% will be levied on the purchase of affordable housing by home buyers, it added. (Reporting by Ella Cao, Ellen Zhang and Liz Lee; Editing by Sharon Singleton)