Debated in Parliament on 9 Jan 2023.
Ms Joan Pereira asked the Deputy Prime Minister and Minister for Finance whether the Ministry will consider providing higher rebates for property tax for owner-occupied HDB flats in addition to the one-off property tax rebate of up to $60 to offset the increase in property taxes.
Property Tax (PT) is assessed annually based on the annual value (AV) of the property, which is based on the prevailing rental market conditions. The AVs for Housing and Development Board (HDB) properties have largely remained unchanged for the last five years. But they have moved up recently and that is why the PT payable will have to increase in 2023. But all 1- and 2-room HDB owner-occupiers will continue to pay no property tax because their revised AVs remain below $8,000.
To further cushion the impact, the Government is providing a one-off 60% PT rebate to all owner-occupied residential properties, capped at $60. We have sized the rebate based on our overall fiscal considerations, and also to provide more support for households living in HDB flats with lower AVs. For example, the PT payable for owner-occupied 3-room HDB flats will range from $21 to $40 per annum after rebate. In comparison, the PT payable for 5-room/executive HDB flats will be $148 to $225 per annum after rebate.
Our PT regime remains progressive, with higher rates applied to residential properties with higher AVs. In addition, non-owner-occupied residential properties pay higher PT. This is part of a fair system of taxation, where everyone will contribute, but those with greater means will contribute more.
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