SHIPYARDS AND SLIPWAYS (Exemption from property tax)

Mr Ng Yeow Chong asked the Minister for Finance if he will consider waiving the proposed levy of property tax on Temporary Occupation Licences held by shipyard and slipway owners along the Geylang River in the Kallang Park Industrial Estate.

Mr Tang See Chim (for the Minister for Finance): Mr Speaker, Sir, property tax is leviable on all land and improvements on land. Property tax is, therefore, payable on shipyards and slipways. Under the present arrangement between the Jurong Town Corporation and the owners of the shipyards and slipways, these owners pay the property tax through the Jurong Town Corporation.

Any exemption or reduction of property tax is a hidden subsidy from the Government. The shipyards and slipways have been enjoying boom conditions in the past few years and there is no reason why they should be further subsidized by Government. The Government has, therefore, no intention of exempting shipyards and slipways from property tax.