(CRI)
Updated: 2007-02-08 14:03

Starting from February, Beijing will begin collecting taxes from those renting out their property.

The Beijing Local Taxation Bureau announced the regulation asking landlords to pay 5 percent of the rent they charge as rental tax.

Some real estate insiders say the new regulation will not have a significant impact on the housing market. Jin Yusong is manager of Homelink Housing Real Estate Agency.

"Take a house with a monthly rent of 2,000 yuan or around 250 US dollars for example. The landlord should pay 100 yuan or around US$12 for the tax. Compared with the seasonal fluctuations in rent, which usually run from 100 to 200 yuan, the tax is not a big deal."

Even more, some experts say the regulation is not feasible, as there is currently no system for supervising rent collection. As there is no comprehensive list of house rentals in Beijing, it would be difficult to get landlords to pay the bill.