Debated in Parliament on 14 Jan 2013.
Mr Pritam Singh asked the Minister for National Development if HDB will consider introducing a "special levy" on the HDB rental income of HDB owners who reside in private property, as a means to encourage such owners to sell their HDB flats with a view to increase the supply of HDB resale flats and to assist in the moderation of the HDB resale price index.
Singaporean HDB flat owners, including those who own private properties, are allowed to sublet their HDB flats after meeting the Minimum Occupation Period (MOP). Those who do have to pay a higher property tax at 10% of the Annual Value of the flat, as compared to owner-occupiers who pay between 0% and 6%. In addition, their rental income is subject to income tax.
The resale HDB market has to be moderated. The comprehensive package of cooling measures introduced last week will help achieve this objective. It includes a measure which disallows Permanent Residents from subletting their whole HDB flat, as the privilege to buy a HDB resale flat is to meet their living needs. Those who no longer need their HDB flat for owner-occupation should sell it. In any case, HDB does not have the legal authority to impose any "special levy" as proposed.
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