A property tax draft will be submitted to the Standing Committee of the National People’s Congress – China’s parliamentary body – for review this year, said Liu Jianwen, a professor at the Law School of Peking University, China News Services reported.

Property tax is considered a housing market cooling mechanism. If launched, on the one hand, it can reduce the vacancy rate, save resources, and greatly promote social equity; on the other hand, it will become a relatively stable source of revenue for local governments.

It is widely believed that the property tax will be levied, but the state of the economy is such that the government will likely proceed slowly with the promotion of the launch.

However, according to the reform timetable set by the Politburo earlier, all reform tasks will be largely completed by 2020. There are currently 10 types of tax that have not yet become law, Liu said.