China's government will implement substantial increases in taxes and other fees associated with land sales in its effort to curb runaway investment, authorities said yesterday.

Among the major elements of the new policies from the Ministry of Land and Resources, compensation paid to people forced to move to make way for new developments will be doubled.

The higher payments will benefit tens of thousands of Chinese families who lose their farmland or homes to redevelopment each year.

In addition, land use fees for new construction projects will also be doubled. The current charges vary from 5 yuan (63 US cents) to 70 yuan per square meter.

The government also intends to triple taxes on urban land, which currently stand at 1.2 yuan per square meter, the ministry said.

The ministry estimates that the new policy may push up the price of some industrial land by as much as 60 percent. The market will apparently accept the higher fees, based on trials in select cities, authorities said.

The ministry said increased land prices will help check excessive industrial development and force local governments to improve the viability of their projects.

China's economy grew 10.9 percent in the first half of this year on the back of a 30-percent jump in fixed-asset investment.

In a bid to control the sizzling growth, China has repeatedly raised the benchmark interest rate and clamped down on unauthorized investment projects.

The government believes that checking excessive credit growth and land supply are effective ways to cool the economy.

The State Council, China's Cabinet, issued new macroeconomic control policies aimed at tightening land supply on Tuesday.

Highlights of the policy include tougher punishment for local officials involved in illegal land transactions, more emphasis on safeguarding the interests of farmers who lose their land and the establishment of a minimum price on industrial land.

Editor: Yan