BEIJING Dec 28 China needs a real estate tax to
control rising property prices and narrow the gap between rich
and poor, Fan Gang, a member of the central bank monetary policy
committee, was quoted as saying.
Reasons for the delay include resistance from vested
interests and a lack of clarity on how a property tax will be
handled between the central and local governments, financial
media group Caixin on Wednesday cited Fan as saying.
China's home prices rose at the fastest pace on record in
November, and dozens of cities have raised the bar to buy a home
in an effort to control prices.
China has for years mulled an annual property tax, but
little progress has been made since a limited tax was
implemented in Shanghai and Chongqing in 2011.
"The (property tax) isn't on the State Council's agenda. I
don't understand why it can't be done. It's been more than 10
years," Fan said.
The State Council is China's cabinet.
In November the finance minister at the time said China was
actively pushing forward reforms on property taxes, and
President Xi Jinping last week mentioned taxes as a way to
address speculation in the market.
"If China does not introduce a property and capital gains
tax, there will be no easing of the gap between China's rich and
poor," Fan said, according to Caixin.
(Reporting by Elias Glenn; editing by Andrew Roche)