Land value tax in Wales could replace council tax and rates
The former first minister said the Welsh Government continues to explore the feasibility of LVT as used in countries such as Denmark and Singapore.
Professor Drakeford has long supported a LVT, arguing those who have the privilege of ownership should pay something back for that privilege.
LVT is levied on the value of the land rather than the property itself.
Proponents argue LVT is easier to collect, more efficient and difficult to avoid, while discouraging speculation and encouraging people to bring idle land back into use.
Professor Drakeford told the Senedd: "I am anxious to see this discussion move beyond the theoretical and into the realms of the practically possible.
He explained that the Welsh Government has invited tenders to test approaches to valuing land, with submissions for every aspect of the work.
The finance secretary said: "I want to use the coming months to test the boundaries of what might be possible in the next Senedd term.
"Let's open the door to more radical, fundamental and progressive reform in the future."
He added: "The current system is unfairly weighted against those who experience difficulty in paying.
"I want to shift the focus from harmful escalation towards supportive prevention."
He stated ministers will introduce a new council tax appeals process by April 2026 that will be "easier to navigate and provide a better, modern system for taxpayers".
Peter Fox agreed that council tax is regressive by nature "and that it will never really become a fair local tax".
Mr Fox accused the Welsh Government of increasing tax on families "by stealth" through underfunding councils which, in turn, pass on the shortfall to people.
He called for reform of the "outdated and flawed" funding formula.
Professor Drakeford replied: "Almost every local authority in Wales will agree that the formula needs revision – nobody can agree on how that should be done.
"The 22 local authorities each believe that the formula uniquely disadvantages them."
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