Govt urges strict implementation of real estate taxes

The central government has called for a strict implementation of differentiated real estate taxation across the country to curb property speculation, responding to the second quarter's increasing housing prices.

Xie Xuren, minister of finance, said the government will reinforce tax collection during the property sales process, and will strictly carry out the pilot trial of property tax levied on high-end housing purchases in some regions.

The number of cities where prices of newly built property have seen monthly increases jumped to 50 in July out of 70 cities. The figure marks a twofold increase from June, according to the National Bureau of Statistics. The prices of second-hand homes have been rising at an even faster rate than new ones.

Currently, China has allowed two cities, Shanghai and Chongqing, to roll out trials for property taxes. Such taxes are now only collected on newly purchased properties and high-end villas.

Wang Chaocai, deputy head of the fiscal sciences research center affiliated with the Ministry of Finance, said in a previous interview that a national property tax is not likely to be introduced before March 2013.