Debated in Parliament on 5 Feb 2013.
Dr Lim Wee Kiak asked the Minister for National Development over the last three years, (a) what is the annual amount of HDB resale levies collected; and (b) what is the number of appeals received by HDB for such levies to be reduced or waived.
On average, HDB collected about $22 million of resale levy per year. The number of appeals to waive or reduce the resale levy averaged about 2,900 per year.
Madam, I would like to thank the Minister for his reply. I would like to ask the Minister if he agrees that the resale levy represents a significant barrier to homeownership for some residents. This was especially so when the resale levy was changed from March 2006. Before that, it was a floating amount. After the change, it was a fixed amount. Madam, I have a resident who sold his flat before that, and was told he has to pay $40,000 in resale levy. He booked a new flat last year and was told that he has to pay $72,000 in resale levy. The reason given to him now is that there is an interest rate attached to the resale levy and this has accumulated. I hope that the Minister can comment on this; whether the Minister will consider harmonising this resale levy for the entire market to see how to help those who have problems with the resale levy to have homeownership.
Madam, yes, indeed, there are some families where the resale levy has become a barrier. These are essentially those who sold their flats quite some time ago when the levy was computed based on a certain
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formula. The formula was revised in 2006 and it is now a fixed quantum. It is hard to harmonise both formulae because many have paid using the old formula. If we apply the new policy, it would not be fair to all those tens of thousands of people who had paid based on the previous formula. But we try to be as helpful as we can. So, upon appeal, we have approved many such cases. We will have to take into account family situations and circumstances. There are many ways to help them. Sometimes, we reduce or even waive the interest charges. If the transaction happened many years ago, the interest charges can be very large. That is where we try to help.
Thank you, Mdm Speaker. Minister, just following up on the issue of the resale levy, like the hon Member Dr Lim, I have residents who find the resale levy a significant barrier to a subsequent purchase. Can the Minister consider the resale levy, because it is a cash component, to be paid in instalments, for instance? I have residents, the low-income in particular, who just cannot afford to stump up the $30,000 to $40,000 in resale levy. This is quite common in quite a few low-income cases.
Mdm Speaker, as I said, there are several ways to help deserving cases. Reducing and waiving interest is one. Incorporating the levy into the price of the new flat so that they can then subsequently pay by instalments or out of their CPF is another. We have used either approach quite frequently. We have to look at individual cases.
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