Overview

The journalists of China Security recently confirmed that Shanghai and Chongqing will host first round trials of a property tax system, though no detailed timetable has been set by the central government.

The Ministry of Finance’s Tax Policy Department Director, Zhou Chuanhua, said in early December that the government will gradually implement a tax on private properties during the next five-year planning period (the 12th Five-Year Plan).

According to another official from the Ministry of Finance, the property tax is designed to be the primary tax source for local governments in east China, while the resource tax will be the primary tax source in west China.

Commentators believe that the proposal for property tax reform will be issued before the annual meeting of the National People’s Congress in March.

Squire Sanders discusses the details.

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