Taiwan's legislative authorities on Friday approved a tax regulation mainly aimed at cooling down housing prices on the island.

The regulation, formally called taxation on special commodities and services, rules that resales of non-owner-occupied properties within one year after registration will be levied 15 percent of its transaction amount for taxes. Resales that occur within two years will garner a 10 percent tax.

Other commodities priced over 3 million New Taiwan Dollars, such as cars, private planes and yachts, will be levied a luxury tax of 10 percent. Trade in coral, ivory and turtle shells will also be taxed 10 percent of the transaction amount, it said.

The regulation also rules that non-refundable membership to any clubs that charge more than 500,000 NTD will be taxed 10 percent. All of the revenue collected from the tax will be used for social welfare expenditures.

Lee Sush-der, head of the Taiwan authorities' financial department, said that the tax will help people buy residential properties at more reasonable prices. The department will work out detailed implementation for the tax to go into effect as soon as June 1.

Prices of residential properties in Taiwan have risen sharply since last year, especially in Taipei City, New Taipei City, Taichung, Tainan and Kaohsiung.

Statistics from Taiwan authorities indicated that housing prices in Taipei at the end of last year had jumped from 126,000 NTD to a record high of 147,000 NTD per square meter.