A more progressive tax structure will be introduced for properties and cars to achieve greater social equity without hurting Singapore’s competitiveness.
Deputy Prime Minister Tharman Shanmugaratnam, who announced these changes in his Budget Statement on Monday, said 950,000 owner-occupied residential properties will be able to enjoy some tax savings.
The zero per cent property tax rate band, which currently applies to the first S$6,000 of annual value of properties will be widened to S$8,000.
Currently, property tax rates for owner-occupied residential property are at zero per cent, four per cent and six per cent, depending on the annual values of the properties.
In addition to the current four per cent and six per cent tax bands, the government will introduce new bands of eight per cent to 16 per cent.
High-end investment properties will also see significant increases in tax rates.
Instead of the current rate of 10 per cent flat, they will be increased to between 12 per cent and 20 per cent.
Source : Channel NewsAsia – 25 Feb 2013