A prominent Chinese expert from a government think-tank has called for coordinated efforts to quicken the introduction of property tax legislation and accumulate more experience through trial tax programs.
China currently has 11 property-related taxes, which should be managed and improved as a whole, as part of the drive to tame the red-hot housing market, said Jia Kang, director of the Institute for Fiscal Science Research under the Ministry of Finance, in an article published by the China Securities Journal on Friday.
However, speeding up legislation does not mean accomplishing it in one move, Jia said, adding that it will take time for China's existent property regulations to be deliberated on and elevated as laws governing the whole nation.
China has been wrestling with runaway home prices for years, with the introduction of pilot property tax programs in Chongqing and Shanghai in 2011 as one of its latest recourses. For example, under the program in Chongqing, taxes are levied on owners of villas and high-priced apartments.
Jia advised prudence in the expansion of the trials, adding that progress should be guided by the principle of regulating the high-end property sector instead of indiscriminate imposition on all properties.
China's annual political sessions will open in early March for the National Committee of the Chinese People's Political Consultative Conference, the top political advisory body, and the National People's Congress, China's parliament. Property tax legislation is widely expected to be a hot topic of discussion.