Property tax pilot scheme to expand to more cities

Source:Xinhua Published: 2013-5-20 23:23:01

The government has put an increase in the number of pilot cities for property tax trials on the work agenda this year, the China Securities Journal reported Monday.

The upcoming pilot work is expected to levy taxes on homes purchased after the pilot program is implemented, while also taking local conditions into account, the journal said.

China's property tax pilot program was initiated in January 2011 in Shanghai and Chongqing municipalities.

Shanghai has taxed housing purchases since January 28, 2011, with rates of between 0.4 percent and 0.6 percent, while giving an exemption of 60 square meters per capita for every registered household.

The property tax in Chongqing has been levied on homes purchased both before and after the pilot scheme was implemented there. The property tax there especially targets luxury home purchases.

Both cities have raised the tax threshold this year as housing prices have kept moving higher in most Chinese cities, the report said.

Analysts regard the expansion of the property tax trials as a necessary long-term measure for China's real estate market.


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