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China's capital city Beijing has adjusted the way it classifies lands for taxation, according to a circular issued yesterday by the Beijing Local Taxation Bureau.

Lots in Beijing Guandongdian North Street, East Third Ring Road, Chaoyang Road and West Dawang Road have been classified as first-class land, meaning the highest land-use tax will apply to property located along the corridors.

According to the circular, if a piece of land located in the area is classified in two or more tax levels, the highest taxes the land falls under must be paid.

The land-use tax imposed on developers has been raised to between 1.5 yuan (19 US cents) and 30 yuan per square meter each year in big cities, depending on the size and location of the property, according to a Chinese regulation.

Land-use taxes are 1.2-24 yuan per square meter annually in medium-sized cities and 0.9-18 yuan in small cities.

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