PROPERTY TAX (AMENDMENT) BILL

6.08 p.m.

Order for Second Reading read.

The Minister for Finance (Dr Goh Keng Swee): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time,"

Under the former local government legislation there was provision for a refund of rates on unoccupied buildings intended for renting. But when the property tax was imposed in 1961, no provision was made for a refund of tax on unoccupied buildings as the tax was on ownership of property as an additional source of general revenue. Unlike the former rates, it covered the cost of services provided by the local authorities. There was also at that time an acute shortage of housing and it was intended to discourage house owners from exploiting the situation by holding the houses in vacancy in the hope of collecting higher rentals later. Due to the successful efforts of the Housing and Development Board and due to extensive private development, the housing shortage has eased considerably since then. And it is now possible to allow a house owner, who has made a genuine effort to let out his house at a fair rental but has failed to do so, to claim a refund of tax for any period his house has been vacant for 30 days or more continuously. On 9th November last year I announced that this decision would be made effective from the 1st January, 1963. This was repeated in my Budget Statement of 7th June, 1963. The object of clause 2 of the present Bill is to give effect to that decision.

At present aggrieved property owners may lodge objections against valuations with the Valuation Review Board. Over the last two years the majority of objections were minor ones which could have been satisfactorily settled by the Inland Revenue Department. The Bill provides in clause 3 for such objections to be lodged first with the Chief Assessor, while reserving to the property owner the ultimate right of appeal to the Valuation Review Board against the Chief Assessor's decision. This will make for more expeditious decisions without jeopardising the right of appeal to the Board.

Clause 6 of the Bill will also confer on the Chief Assessor the right to appeal to the High Court against any decision of the Valuation Review Board on any question of law or fact and law. This right is being enjoyed at present only by the property owner, and not by the Government.

Clause 7 of the Bill provides for property tax to be payable not only from the date of completion of the new building, but also from the date of completion of any alterations or improvements to buildings.

Clauses 4, 5 and 8 to 14 of the Bill provide for minor and consequential amendments.

Sir, I beg to move.

Question put, and agreed to.

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

Assembly immediately resolved itself into a Committee on the Bill. -[Dr Goh Keng Swee]

Bill considered in Committee; reported without amendment; read a Third time and passed.