(Bloomberg) -- Chinese policy makers signaled they may revive efforts to introduce a property tax, following slow progress in legislating the levy in previous years.
A trial of property tax reform was discussed at a seminar held Tuesday by officials from China’s Ministry of Finance, top legislature, housing ministry and taxation administration, according to a statement on the finance ministry’s website. The participants listened to opinions on the tax trial from local officials and some scholars.
The wording marks the first time Chinese policy makers mentioned a property tax trial, after years of pushing toward formal legislation on the levy, said Yan Yuejin, an analyst at E-House China Enterprise Holdings Ltd.’s research institute.
A national tax on home ownership has been seen as a key way to cool speculation, while also running the risk of depressing market sentiment. Premier Li Keqiang said in March 2018 the government will press ahead with such a tax, a policy that had previously only been mooted.
In March, the government pledged to push forward with the property tax legislation as part of its new five-year plan covering 2021 to 2025, but little progress has been made so far.
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