The Standing Committee of the National People's Congress (NPC), China's top legislature, on Saturday adopted a decision to authorize the State Council to pilot property tax reforms in certain regions.
The move aims to advance the legislation and reform of property tax, guide rational housing consumption and economical use of land resources, and promote the healthy development of the real estate market, said the decision.
China's Ministry of Finance and the State Taxation Administration will draft the measures for piloting the property tax and make preparations for the work in accordance with the authorization of the Standing Committee of the NPC.
The trial period authorized by the decision is five years.
Property tax has been discussed for a long time in China but its deployment faces challenges because of the complicated situation of the domestic housing market, the various tax types related to real estate, and the different realities of cities.
Efforts have been steadily made in recent years. Shanghai and Chongqing have started levying property taxes on individual residential properties on a trial basis in 2011.
The 14th Five-Year Plan (2021-2025) also proposed to promote legislation on property tax.
In May this year, the Ministry of Finance, the Budget Commission of the Standing Committee of the National People's Congress, the Housing Ministry and the State Taxation Administration solicited opinion from representatives, experts and scholars on a pilot scheme for implementing the property tax.