Beijing is considering introducing a new tax category on stock transactions, State Administration of Taxation director Jin Renqing told a national tax work meeting being held in Beijing.
Talk of the planned securities transaction tax has been making the rounds in the past few years.
While details of the securities transaction levy will not be revealed until the work meeting is completed, traders and local tax officials said the new tax should be designed to replace the existing stamp duty on securities transactions.
They said investors should pay more or less the same amount of taxes as before.
Investors now pay a 0.4 per cent duty on every share purchase and sale, in addition to broker's commission of 0.35 per cent.
They also believed that the tax-sharing arrangement between the central taxation authorities and Shanghai and Shenzhen - the two mainland cities that house stock exchanges - should be maintained.
