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China to test a property tax scheme in select areas.

According to the official Xinhua news agency, China’s highest decision-making body said on Saturday that a pilot real estate tax will be implemented in some provinces of the country.

The State Council, known as the Cabinet, will decide which regions will be involved, as well as other information. The long-proposed and long-resisted property tax has received new pace since President Xi Jinping endorsed one of the most significant revisions to China’s real estate regulations in a generation, according to analysts.

A tax could aid soaring housing prices, which have increased by more than 2,000 percent since the housing industry was privatised in the 1990s, causing a shortage of affordable housing in recent years.

The tax will apply to both domestic and non-residential property, as well as property and land owners, but it will not apply to lawfully owned rural land or property on which dwellings are constructed.

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