Business / Policy Watch

China to expand property tax trial regions

( Updated: 2012-09-21 20:59

China will expand its property tax trial to include more cities beyond Shanghai and Chongqing, and will gradually set up a nationwide property tax system, officials said.

A real estate tax system will be established gradually along with the expansion of the pilot property tax scheme, Cong Ming, inspector from the policy and regulations department at the State Administration of Taxation, was quoted as saying by the China Securities Journal on Friday.

The details of the real estate taxation system will be worked out by the end of this year or early next year, Cong said.

Cong also said that the current property tax, which is collected in accordance with the property's selling price, should take into account the land price.

Apart from Shanghai and Chongqing, more cities will launch property taxes in the near future, said Cong. The final goal is to set up a property tax system that can be used for more than just as a tool to cool down the property market, he added.

Separately, Cong said that the consumer tax reform will also be launched soon.

Products made by consuming a large amount of energy and resources, or that cause severe pollution, will be hit by higher taxes, while taxes for cosmetics or gold products will be lowered. Also, the oil tax will be collected from individuals rather than from oil companies, as is the case now.

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