China reasserts plans to expand property tax

The Chinese government on Wednesday reiterated its plans to impose a trial property tax on more cities, while encouraging municipal authorities to stem price rises on new-build housing, Reuters reported. The State Council led by Premier Wen Jiabao did not provide specifics on how it would expand the tax initiative. The program currently covers only Shanghai and Chongqing, with rates imposed of between 0.5% and 1.2%. Municipalities, which are under the authority of the central government, were urged to specify yearly price limits to keep new housing costs “basically stable,” according to a separate report. The measures come after data showed house prices climbing last month.