During the G20 finance ministers' meeting in Chengdu held on July 23,

China's finance minister Lou Jiwei said that in order to better address inclusive growth and income distribution, the reform of income tax system as well as property tax system is necessary.

To date, these two reforms have yet to be introduced and one of the key reasons is the poor administration of information collection. Besides, to press ahead the reforms will inevitably require adjustments to the current balance of interests, which is also the most difficult part.

The research team at ANBOUND Consulting is of the view that the property tax involves multiple stakeholders and if the same were to be introduced now, it will face resistance from the local governments, high-income group as well as the general public.

The questions on when and how to implement the property tax depends very much on the determination of the central government.

The introduction of the property tax will have far reaching impacts on various aspects.