China's experimental property tax may be expanded to the rest of the country, Chongqing Mayor Huang Qifan told Reuters Wednesday.

"The property taxes could be extended nationwide in 2012 or 2013," Huang said. "It will play a long-term role in restraining rising home prices."

Chongqing and Shanghai adopted the property tax in January this year in a bid to tame speculation and surging prices in China's property market. The taxes were placed on expensive residential properties, with slight differences between the two cities. Chongqing's version applies to existing properties, while Shanghai only levies the tax on properties bought after policy went into effect.

In the interview, Huang also highlighted the long-term role that property taxes play in controlling housing prices.

"Chongqing is the only one of China's major cities that hasn't imposed limits on property purchases, because the property tax is working," said Huang. Of China's 70 major cities, the increase in Chongqing's property prices was among the smallest, Huang added.

China's business press carried the story above on Friday.

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