BEIJING, Oct. 16 --  The introduction of China's property tax is proceeding in an orderly way with the number of simulated pilot operation regions increasing.

    The State Administration of Taxation (SAT) and the Ministry of Finance have recently approved a new batch of four regions: namely Anhui, Henan, Fujian and Tianjin, to become pilot areas for simulated operation, taking the total to 10 municipalities, provinces and autonomous regions.

    The other six are Shenzhen, Beijing, Liaoning, Jiangsu, Ningxia and Chongqing.

    According to an official with the SAT, the country is now carrying out studies on real estate reform and implementation of property tax, and the simulated pilot operation is aimed at accumulating experience for imposition of property tax.

    According to market speculation, the property tax is likely to be introduced in 2008.

    Although there has been no timetable set for the property tax levy, the basic framework has been worked out. The country is expected to unify the current housing property tax, city real estate tax, land VAT (value-added tax) and land leasing fees into property tax.

    The simulated pilot operation involves finance, real estate and land administration departments, which make assessments and keep statistics related property.

    The move comes as China's property prices continue to surge.

    Commercial banks across China are increasing the mortgage down payment for second-home and above buyers in a joint effort to curb surging housing prices launched by Chinese banking authorities.

    The Guangdong branch of Pudong Development Bank has raised the down payment for third homes to 50 percent from 30 percent, and fourth homes, to 60 percent. It will also lift the mortgage rate for second homes to 1.15 times the benchmark one-year lending rate.

    The Guangdong branches of China Merchants Bank and Industrial and Commercial Bank of China have also implemented similar policies as Pudong bank. The Shenzhen branches of Everbright Bank and China Merchants Bank have even canceled fixed-rate mortgages for second-home buyers.

    (Source: Shenzhen Daily)