China Adopts 5-year Property Tax Trial

China's top legislature "NPC" approved on Saturday a resolution authorizing the state council to start a property tax trial in certain regions.

According to the resolution, the trial period will take five years. The five-Year Plan (2021-2025) also proposed to strengthen legislation related to property tax.

The resolution aims to advance legislation and property tax reform, direct the rational consumption of housing and economic use of land resources, and promote the healthy development of the real estate market.

Meantime, China is set to expand pilot property tax reforms, state media reported, as the government battles real estate speculation in the world's second-biggest economy.

The Ministry of Finance and the State Administration of Taxation of China will establish procedures for property tax experimentation and preparations for work in accordance with the mandate of the NPC Committee.

"Property tax has been discussed for a long time in China, but its publication faces challenges due to the complex situation of the local housing market, the different types of taxes related to real estate, and the different realities of cities," Reuters wrote.

"Efforts have been made steadily in recent years. Shanghai and Chongqing began taxing inpidual residential property on a trial basis in 2011."

In May, the Minister, the NPC , as well as the Ministry of Housing held discussions with representatives, and experts on the trial of the property tax law.