China considers property tax

BEIJING, Oct. 17 (UPI) -- China, facing skyrocketing housing prices, reportedly is considering levying a property tax starting next year to ease the pressure.

The tax will be implemented on a trial basis in some regions and major cities, including Beijing where the problem is most acute, the Shanghai Daily reported quoting the China Securities Journal.

The State Administration of Taxation was quoted as saying the agency is preparing to introduce the tax, but noted more research is needed because of the large gaps among regional economies.

“Property tax is an inner stabilizer of real estate market,” said Fan Gang with the National Economic Research Institute China Reform Foundation. “The tax can reduce (the number of) idle properties and will be a stable income resource for the government,”

The report said China has levied a variety of property taxes on developers in the past including value-added tax, land-use tax and land-transfer fees, with developers passing on these costs when the properties are sold.