SINGAPORE IMPROVEMENT TRUST FLATS (Assessment rate)

[Mr Speaker in the Chair]

Mr Ch'ng Jit Koon asked the Minister for Finance whether the assessment rate of 23 per cent extended to Housing and Development Board flat-owners applies also to the owners of pre-war flats built by the former Singapore Improvement Trust, and, if not, whether consideration will be given to the extension of this concession.

The Parliamentary Secretary to the Minister for Finance (Mr Tang See Chim) (for the Minister for Finance): Mr Speaker, Sir, the 23 per cent assessment rate will apply only to those flats sold by the Housing and Development Board under the Home Ownership Scheme. The concessionary rate will not apply to pre-war flats.

The reason for fixing a concessionary rate of assessment for flats purchased under the Home Ownership Scheme is that the scheme was established to assist the lower income groups to purchase homes for their own occupation, and certain restrictions on assignment, sub-letting, renting, etc., are imposed in respect of such flats. The pre-war flats were sold under different conditions. They were straightforward sales at market values without due regard to the income levels of the purchasers, and no restrictions were imposed in respect of sale and sub-letting. There is, therefore, no reason to extend the concessionary rate to such flats, and it is not intended to do so.