Property tax in China is needed in order to reverse a significant imbalance in wealth distribution, according to Zhang Monan, a researcher from the State Information Centre.

According to Ms. Zhang, China needs to improve its property reporting system and to levy taxes on different personal holdings, including real estate, inheritances, donations and capital earning.

To help “extricate” local governments from too much dependence on land for revenue, Ms. Zhang suggested the moderate transfer of some taxation powers from the central government to local governments.

China’s plan to raise the individual income tax threshold from 2,000 yuan (US$306) to 3,000 yuan (US$460) a month is a vital step towards reducing the wealth gap and fixing the nation’s income “distribution disparity.”