PROPERTY TAX ORDINANCE (Amending legislation)

Mrs Seow Peck Leng asked the Minister for Finance whether he will introduce a Bill to amend the Property Tax Ordinance for the purpose of exempting vacant property from property tax.

The Parliamentary Secretary to the Minister for Finance (Mr S. Ramaswamy) (for the Minister for Finance): I have been asked to reply. During the debate on the Second Reading of the Property Tax Bill, the Minister explained the reasons why tax would be levied on vacant property. May I refresh the hon. Member's memory to what he said then? [Hansard, 29th December, 1960, col. 904]:

`Today we know that there is a shortage of housing. It is very difficult to get accommodation at reasonable rents. There is no excuse whatsoever for any large number of houses to go vacant for any long period of time. If that happens, it merely means that the landowners are charging too high a rent. This being the case, it is only fair, taking the long-term view of their net income, that they should be taxed during the periods when their property is vacant.'

The Minister also said that "where there is a surplus of housing and many houses are vacant, although the rents charged are reasonable ... there would be a case for reconsidering the position." The position today does not differ very much from the time the Property Tax Bill was introduced; just over a year ago. There is, therefore, no reason to exempt vacant property from property tax.

Mrs Seow Peck Leng: Mr Speaker, Sir, does the Parliamentary Secretary realise that the property tax on vacant property does hinder developers from developing? I have given reasons before and so I shall not waste the time of the House now.

Mr Ramaswamy: This was dealt with during the debate on the Budget, Sir.

Mrs Seow Peck Leng: Mr Speaker, Sir, all that he said was that he would like to see me in the C.P.A. Room and have a chat over it. Would you take that as an answer to the question, Mr Speaker, Sir?

Mr Speaker: I am not the Parliamentary Secretary, and I do not know. Mrs Seow, Question No. 8.