(Yicai Global) April 26 -- China, a rare case of a country with no property tax, is likely to postpone levying such duties on real estate owners despite completing the registration of all houses, a process that took 10 years to finish, according to experts.

The foundation for China’s economic recovery is still not solid and stabilizing the housing market is a very significant task so property tax should not be levied in the short term as it would cause housing prices to fall, Shi Zhengwen, director of a tax law center at the China University of Political Science and Law, said to Yicai Global.

China is the only major global economy that has no real estate tax but the Ministry of Natural Resources yesterday announced that after a decade of effort, the country has established a unified registration mechanism that covers all land and spaces in China as well as property rights, a move which could be conducive to tax policy change.

However, experts deferred judgment. The promotion of a unified registration system does not mean the country is preparing for added taxes but executing the Property Law, Shi said, adding that new taxes call for considerations about the economic situation and social consensus.

Still, the expectation is grounded in government goals. China’s 14th Five-Year Plan, which continues till 2025, proposed implementing property tax, according to Tian Zhiwei, deputy head of a public policy research institute at Shanghai University of Finance and Economics. However, real estate markets vary a lot across the country so the legislation needs to be carried out gradually and steadily, Tian added.

Last year, the finance ministry said that it is studying the implementation of property tax in some cities but the pilot was not expanded to more cities.

Editor: Emmi Laine, Xiao Yi