China Pilot Prpty Tax Helps Curb Local Govt Debt Risks: Daily

The new pilot property tax to be implemented in selected cities will help stabilize and increase local government revenues and contain risks from overly relying on land revenue and local government debt, the Economic Daily said in a commentary. The relations between China's land and property markets and overall economy will undergo big changes after the NPC approved the property tax trial program, said the official newspaper. Authorities should implement well policies that stabilize prices of land and houses, boost land supply for housing, allow agricultural land to enter the market and change the government as the sole provider of residential land, the newspaper said. Officials should diversify the economy and reduce dependency on property development, it said.