Southwest China's Chongqing municipality plans to levy a tax on luxury property purchases to rein in soaring prices in the real estate market, the Beijing News reports.
With detailed regulations to be released at a date yet to be determined, the taxation of high-end commercial housing could be carried out during the first quarter of 2011.
Chongqing Mayor Huang Qifan said last year that the government planned to impose a tax on villas and apartments larger than 200 square meters or with an evaluated value that was three times greater than the average price for a comparable apartment.
At the time, Huang said the property tax would be a progressive one in terms of housing areas and that those who purchased more than four properties and speculative property buyers might have to pay a tax.
Chongqing is the first city in the country to put in place such a tax, the report said.
Jia Kang, Director of the Research Institute of China's Ministry of Finance, told a meeting on Sunday that the country's first-tier cities should roll out pilot projects imposing a property tax as early as possible.
"To levy a property tax will restrain the excessive demands and adjust the market," said Gu Yunchang, Vice Chairman of the China Real Estate and Housing Research Association.
