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BIZCHINA / Center |
MOF likely to levy property tax next yearBy Lin Guan (chinadaily.com.cn)
Updated: 2007-12-17 17:38 The Ministry of Finance (MOF) may pilot property taxes next year, probably starting from commercial premises, Beijing Business Today reported, citing Beijing University Real Estate Research Institute director Feng Changchun at the China Real Estate Summit yesterday. According to Feng, a member of the work group drafting property tax related policies, the ministry intended to launch the taxes this year, but was held back by certain reasons. He said given the relatively minor amount of commercial premises, the taxes would first apply to office buildings and commercial locations. Following that, the government will tax owners with more than one house, and then extend the taxation system to all real estate owners. Currently, the MOF is researching methods to appraise real estate locations and establish appropriate tax bases and tax rates. By increasing costs in holding properties, property taxes are considered an effective measure to curb real estate speculation and overinvestment. Presently, 10 provinces have their property tax system in place, triggering speculation that the taxes may take effect in the upcoming year.
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