A land ministry official has revealed Chinese authorities are
considering a heavy property tax on those who purchase a second
home or luxury housing, Chinese newspapers reported yesterday.
This was disclosed by Su Kexing, vice director general of the
Land Use Department of the Ministry of Land and Resources, at a
recent seminar in Beijing, amid calls by the general public to cool
down speculation on the housing markets in some parts of the
country.
Su said residents will enjoy zero property tax for basic
housing, but the tax rate would be very high for a second home,
villas and other up-market homes. He did not reveal a timetable for
legislation on property tax.
Su said some developers are still building villas despite a ban
by the State in 2003. He promised to launch an investigation and
crack down on local government officials and developers who are
involved in illegal developments of villas.
Earlier this month, Minister of Construction Wang Guangtao said
China will increase the supply of medium and low-cost flats in
2006, in a bid to make housing more affordable.
(Shenzhen Daily January 17, 2006)
