Pilot testing of a property tax could be introduced in the eastern Chinese province of Zhejiang, according to a former government expert, reports Reuters. The suggestion is the latest sign that the country is moving towards the adoption of the long-discussed tax.
Friday saw China’s leader Xi Jinping call for progress on a property tax that could help reduce wealth inequality as the country strives to achieve his goal of “common prosperity” by mid-century.
China launched a pilot property tax program in Shanghai and Chongqing in 2011, and experts have previously suggested that the pilot testing be broadened to include Shenzhen city and Hainan province, according to Chinese state media.
The proposed property tax has faced resistance from stakeholders including local governments, which rely on revenue from land sales and worry it would erode property values or trigger a market sell-off.