The Ministry of Finance has held a luxury tax conference on Wednesday to listen to opinions from various industrial groups on the planned policy.

The representatives from the real estate industry said that the luxury tax will undermine the real estate market as well as the economic growth. Still, some scholars believe that the proposal will help curb property speculation.

The Ministry of Finance invited scholars, government officials, and representatives from Taiwan's three largest industrial groups to a conference on the luxury tax on Wednesday.

The MOF hopes to finalize a draft of the proposed tax and have it reviewed by the Legislative Yuan by the end of the month.

Representatives from the real estate industry say that using the luxury tax to curb real estate prices would create a lose-lose situation and cause the economic growth rate to fall by up to 5%.

However, many scholars voiced support for the measure and said that properties that are bought and sold within a four-year period in Singapore are subject to luxury taxes.

MOF officials further said that the luxury tax would only affect real estate investors, and that it will help the construction industry in the long-term.

If all goes smoothly, the first draft of the luxury tax law could be submitted to the Executive Yuan by next week and the tax could go into effect by July.