PROPERTY TAX (SURCHARGE) (ABOLITION) BILL

PROPERTY TAX (SURCHARGE) (ABOLITION) BILL: Order for Second Reading read.

The Minister of State for Finance (Mrs Lim Hwee Hua): Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Overview of the Bill

The Bill seeks to repeal the Property Tax (Surcharge) Act with effect from 1st July 2006. This change was announced by the Prime Minister in his 2006 Budget Statement. The Property Tax (Surcharge) Act was enacted in 1974 to impose a surcharge, in addition to the property tax payable, for certain classes of properties held by foreign owners before 1st January 1974. The purpose then was to discourage foreigners from holding onto these properties during the time of housing shortage. The surcharge is no longer needed as, firstly, we now regulate property ownership by foreigners through the Residential Property Act (RPA), and, secondly, most of these landed properties bought before 1974 have either been sold to Singaporeans or to other foreign owners who have obtained approval under the RPA and who therefore are not required to pay the surcharge.

Key provisions

Sir, clause 1 introduces the Act and states that it will be in effect from 1st July 2006.

Clause 2 repeals the Property Tax (Surcharge) Act.

Column: 1047

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua].

Bill considered in Committee.

The Minister of State for Finance (Mrs Lim Hwee Hua):

The Chairman: The citation year “2006” will be changed to “2007”, as indicated in the Order Paper Supplement.

Clauses 1 to 3 inclusive ordered to stand part of the Bill.

Bill reported without amendment, read a Third time and passed.