Pilot property tax systems have failed: former tax official  

原国税总局副局长:重庆上海房产税试点已经失败

File photo of Xu Shanda. [Photo: the Beijing News]

(ECNS) -- Pilot property tax systems in Chongqing and Shanghai have failed, prompting the new government to discard the current tax model and move ahead with legislation for a new one, the Beijing News reported, citing a former tax office head.

Xu Shanda, former deputy director of the State Administration of Taxation, made the remarks at a forum on modern government and public governance held by Tsinghua University.

Xu said that under the pilot program the property holder pays tax and property-related taxes are unchanged. But the new model, which will involve an adjustment of existing property-related taxes, is expected to reduce transaction costs and address the problem of overlapping taxes.

During this year's "two sessions," some even suggested that the pilot property tax systems currently in place should be banned.

Fu Ying, spokesperson for the second session of the 12th NPC, said at a news briefing that the top legislative body is moving ahead with new property tax legislation.

But Xu said the legislation process will take a long time, as there is no precedent for the tax. "A property tax law will not be issued within the next three years," he estimated.

The property tax systems in Chongqing and Shanghai were introduced in 2011, as China has been wrestling with runaway home prices for years.