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      China to expand property tax policy

      2012-08-21 14:29 chinadaily.com.cn    comment

      China will expand its property tax policy to Central China's Hunan and Hubei provinces, the Land and Resources Daily said on Aug 20.

      Citing an unnamed source from the State Administration of Taxation, the newspaper said the expansion of the property tax policy is being finalized. The paper did not say when the policy would be implemented.

      Second homes and further property bought in Hunan and Hubei provinces will be subject to a tax, with a tax rate which is not expected to be high. The tax will be based on the market valuation of the property, rather than its original value.

      Until now, the pilot property tax policy is limited to Shanghai and Chongqing. Tax on those cities is based on the property's original value.

      The recent housing price rebound has fueled calls for expansion of the property tax policy, which is expected to curb the number of homes investors buy.

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