Jul. 27 – China is weighing a proposal that would tax commercial property based on its market value in an effort to reform its tax system and discourage speculative buying.

Commercial property tax is currently based on the original purchase price. Taxpayers who use commercial property for their own use are charged a 1.2 percent tax annually.

Authorities have been debating on whether to charge property taxes for months now with many reasoning that taxes could stabilize rising real estate taxes and give local governments more income.

Proposals have been aired to extend the tax to residential property, but the idea has run into opposition and is unlikely to be introduced any time soon, officials told Reuters.