Property tax set to be levied on new homes

The central government has decided on a methodology for imposing a pilot property tax on newly purchased houses instead of existing homes, a media report said Wednesday, with more cities set to be included in the program in the second half of this year.

A certain floor space of newly purchased homes will be exempt, with home buyers paying the tax on the floor space of their property that is beyond the exemption limit, the China Securities Journal reported, quoting an "authoritative source" who wished to remain anonymous.

The report did not elaborate on the timeline of the expansion or on whether the tax will be levied just on buyers' first new homes or on second properties as well.

So far, there have been some differences in the details of the program in different cities such as Shanghai and Chongqing.

The National Development and Reform Commission, the country's top economic planner, released a guideline Friday about economic reform that also mentioned "expanding the pilot property tax program to more areas."