Potential of property tax

A good tax policy should not only contribute to fiscal revenue, but help re-balance the distribution of wealth between the haves and have-nots, says an article in China Youth Daily. Excerpts:

The National Development and Reform Commission has issued a notice this week, saying that the levy of property tax is in the pipeline. Experts predict that the tax will quite probably be levied on enterprise buildings, then on luxurious houses and finally on common houses. It may take three or four years for the process to be completed.

It is unrealistic to expect that any efficient tax policy - which will be a major source of national income and adjust the income distribution framework - can be carried out in a single stroke. We must take the income status and tax burden on citizens into consideration and implement the policy in phases.