China Will ‘Gradually’ Implement Property Tax System, Wen Says

China should “gradually” establish a property taxation system that covers trading and ownership, Premier Wen Jiabao said during a visit to the finance ministry today.

The comments were published in a statement posted on the central government’s website. In its more than two-year effort to curb the property market, the government has raised down- payment and mortgage requirements, imposed a property tax for the first time in Shanghai and Chongqing, increased building of low-cost social housing, and placed home-purchase restrictions in about 40 cities.

Many Chinese cities are preparing to introduce property tax trials, the China Securities Journal reported on Nov. 16, citing unidentified people. The central government hasn’t yet decided on their scale and timing, it said. Prices climbed in 53 of 70 cities in November from the previous month, compared with 35 in October, according to data from the National Bureau of Statistics Dec. 18.

To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at frong2@bloomberg.net; Regina Tan in Beijing at rtan87@bloomberg.net

To contact the editor responsible for this story: John Liu at jliu42@bloomberg.net

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