Debated in Parliament on 4 Jul 2023.
Mr Gan Thiam Poh asked the Deputy Prime Minister and Minister for Finance how can the Ministry minimise the impact of rising market rental values on property taxes.
Property Tax (PT) is a tax on property ownership and our principal means of taxing wealth. PT payable is based on the Annual Value (AV), which is the estimated annual rent of the property based on market transactions for similar properties. It rises and falls with market trends.
In 2023, PT payable increased due to both market movements and increases in property tax rates for high-AV residential properties.
To mitigate the impact of the higher PT in 2023, the Government provided a 60% PT rebate to all owner-occupied residential properties, up to a cap of $60.
With the rebate, HDB flat owner-occupiers saw a PT increase of not more than $2.60 a month for those living in a 3-room flat and not more than $4.40 a month for a 5-room flat. For private residential property owner-occupiers, nine in 10 saw a PT increase of less than $50 a month.
The Government remains committed to supporting Singaporeans with higher costs of living, with more support going to lower- and middle-income households. We do so, not by lowering PT rates, but rather through direct support measures, such as the Assurance Package and the enhancements to the permanent GST-Voucher scheme.
PAPERCUTS