BEIJING: China said Thursday it would start imposing property taxes on homes in some cities on a trial basis, in the government's latest move to try and cool the red-hot real-estate market.
The State Council, China's cabinet, approved the trial but said the tax levy method would be decided by the provincial governments, the official Xinhua news agency said.
A statement posted on the Finance Ministry's website said the tax would help "adjust income distribution and promote social equality."
"People's living standards have hugely improved, but the income gap is also widening.... Property tax is one important method to adjust income and wealth distribution, and levying property taxes helps reduce the wealth gap," it said.
It added the tax would help "rational" house-buying.
The trial is the latest in a range of measures taken by the government to curb spiralling property prices, as polls have shown the difficulty in affording housing has become the top consumer fear.
But despite these policies, property prices in China's major cities have continued to increase, posting their fourth straight month-on-month rise in December as sales picked up pace.
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