China's central government is considering selecting two cities from Hunan and Hubei provinces, respectively, for a pilot program for property tax collection on commercial real estate, China Securities Journal reported recently.
The property tax is considered a further measure to curb speculation in the property market, since the tax will increase the cost of holding more than one apartment.
The municipal government of Hunan province has submitted a plan for reforming its taxes, including a measure to gradually launch the property tax in the cities of Changsha, Zhuzhou and Xiangtan, pending approval by the State Council, China's cabinet, rednet.cn reported.
The property tax is planned to be levied step by step, starting from commercial real estate and gradually expanding to all housing, the report said.
Chongqing municipality in Southwest China also drafted a plan for levying the residential property tax, and awaited approval from the State Council, cqnews.net reported, citing Liu Wei, head of local financial bureau.
Liu Wei also said the local government has prepared well for imposing the tax and would publish the plan as soon as it is approved.