Chongqing looks set to become the guinea pig for the introduction of the much discussed and highly controversial residential property tax. Xinhua reports that such a tax on high-end residential real estate has got the nod from the finance ministry and the mayor of the southwestern city. It us up now to the municipal legislature to approve it, usually a rubber-stamp exercise.
Xinhua says the tax could start being levied as soon as March. Then it will be a case of seeing how well it cools real-estate speculation, if at all. Other reports have suggested it will start at 1% and apply to new home purchases only. If so that would get it off to a typically unruffling start.