BEIJING - China will cut deed and business taxes for home purchases in most of cities to help end the property glut, an official statement said Friday.

The Ministry of Finance said houses above 90 square meters will be levied a deed tax at 1.5 percent of the house value, down from the current 2 percent, for first time buyers in all Chinese cities.

In terms of the second home purchase, tax rates will be 1 percent for those under 90 square meters and 2 percent for larger homes in cities excluding Beijing, Shanghai, Guangzhou and Shenzhen. Previously the rate was 3 percent, regardless of floor space.

In addition, sales of houses held more than 2 years will be exempt from business tax in cities excluding the above-mentioned metropolises, said the statement.

The new policy will take effect on Monday.