HOUSING AND DEVELOPMENT BOARD FLATS (Revision of assessment rate)

Mr Cheong Yuen Chee asked the Minister for Finance whether, in view of the policy of the Government to promote home ownership by workers of Housing and Development Board flats, the Government will consider revising the present rate of assessment, which is 36 per cent of the annual value, or the basis of assessing the annual value, of flats purchased under the Board's "Home Ownership Scheme".

Mr Tang See Chim (for the Minister for Finance): Mr Speaker, Sir, the Property Tax Ordinance prescribed a single rate of 36 per cent from 1st January, 1961. However, to give relief to owner-occupiers, it was decided that they should be allowed to pay property tax at the previous rates. This resulted in a multiplicity of rates, and some owner-occupiers were allowed to pay 18 per cent, 23 per cent, 27 per cent or 36 per cent.

The rationalisation of property tax rates for the whole island has been under study, and it is the intention that the anomalies will be removed.

Special concessions to Housing and Development Board flat dwellers will not be fair to other residents living in the same area.

Mr Ng Yeow Chong (Mountbatten): Mr Speaker, Sir, will the Government consider exempting purchasers and transferors of Housing and Development Board flats from paying increased stamp duties, the legislation of which will be contemplated in the near future?

Mr Tang See Chim: Sir, the answer is "No".

Mr Ho See Beng (Bras Basah): Will the Parliamentary Secretary kindly throw some light on the removal of anomalies in the assessment rates -whether they will be revised upwards or downwards.

Mr Tang See Chim: Sir, the whole subject is now under study and the question of assessment rates will be rationalised. At the moment, I cannot say anything more than that.