China may halt property tax expansion

China may postpone expanding its trial property tax across the country, a senior tax official said in a media report published on Monday.

The chief accountant of the State Administration of Taxation, Wang Kang, says that policymakers are still working out details of the pilot expansion, but that they need more time as the country's fundamental tax reform is yet to be completed.

Wang Kang says that both the tax bureau and the Finance Ministry are still studying which cities to include and the rate of tax to be levied. But he says more parties need to join in to reach a well-rounded conclusion.

Industry experts echo the comment by adding that the relevant tax legislations, which serve as the baseline of the property tax reform, have yet to be concluded. Analysts believe that the current tax regime needs change and that home owners should burden heavier tax while retailing sector get lighter ones.

So far, both the Chongqing and Shanghai municipal governments have put out trial property tax bills, which caused heated debates as both cities saw a recent acceleration in housing costs.