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Property tax plan not final

By Hu Yang (chinadaily.com.cn)
Updated: 2010-12-17 15:44

An official from China's Ministry of Finance (MOF) said there is not yet a finalized version of the property tax trial plan, China Securities Journal reported Friday. Various versions of the plan are circulating on the market as drafts by Shanghai and Chongqing, the two trial cities, are waiting for approval.

Jia Kang, director of the Institute of Fiscal Science Research under the MOF, said property tax trials may be launched next year in some cities, according to the report.

An expert revealed a new version of Shanghai's plan during a property tax symposium held in Shanghai on Wednesday. It may specifically target newly purchased houses: for a new property purchaser, if the total floor area of property under his or her name surpasses 200 square meters, the portion exceeding the number will be subject to tax, a 21st Century Business Herald report said.

The aforementioned method would be operable and at the same time avoids strong impact to ordinary families, experts said.

Related readings:  China to begin property tax trial next year: Report  Trial property tax may be levied by March  Residential property tax 'necessary' for healthy market: ministry

However, people with knowledge of the matter told the newspaper that Shanghai's draft plan has been submitted to the MOF, but details are under further discussion, and few people have access to the process.

"The most authoritative sources about property tax is the MOF, followed by the State Administration of Taxation," the report said, citing Chen Sheng, vice-director of a real estate research institute.