China set to approve property tax by end-2010

China’s State Council is set to approve pilot property tax policies by the end of the year, state media reported. The Shanghai and Chongqing municipal governments have submitted draft proposals for a property tax and the Ministry of Finance, the State Administration of Taxation and the Ministry of Housing and Urban-Rural Development are currently in the process of signing off on the drafts. Despite repeated reports of an upcoming tax on property holdings, details have been scant. The central government has been probing the market on the possible effects of a property tax as it looks for a way to slow rapid price growth and speculation in the housing sector.