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Property tax pilot extension may be based on willingness

By Zheng Yangpeng | chinadaily.com.cn | Updated: 2013-05-21 14:42

The second batch of cities for the pilot property tax program will probably be announced this year, 21st Century Business Herald reported on Tuesday.

Citing Wang Zhaocai, deputy director of the Financial Science Research Institute at the Ministry of Finance, the newspaper reported that the selection of the second batch of pilot cities will be based primarily on their willingness to implement the program.

The newspaper also cited a person close to the Ministry of Housing and Urban-Rural Development as saying that it is very likely that the list will be publicized within the year.

The ministry, together with State Administration of Taxation and Ministry of Finance, is conducting a feasibility study on expanding the pilot cities and the possibility of imposing the tax nationwide.

The tax is currently only implemented in Shanghai and Chongqing.

But Zhang Zhijie, an analyst with China Index Academy, said the possible tax will be limited.

He also said many local governments are unwilling to impose the property tax as income from property transactions make up much of their budgets.

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