Jan. 19, 2007 (China Knowledge) – The National Tax Administration on Tuesday said that a land appreciation tax would be fully implemented from next month.

Introduced in 1993, property developers from Feb. 1 have to pay the full tax on the appreciation of property values, which is between 30% and 60%. The tax will be collected as soon as a single development project is finished or transferred.

This announcement has caused stocks of Mainland property developers to drop on the Hong Kong Stock Exchange yesterday. Shares of Guangzhou R&F Properties plummeted 8.58% to HK$15.76, while Agile Property Holdings dropped 8.19% to HK$6.50, Greentown China Holdings dived 7.14% to HK$14.30 and Shimao Property Holdings fell 5.05% to HK$13.16.