PROPERTY TAX (Reassessment)

Mr Yeo Toon Chia asked the Minister for Finance, Minister for Education and Minister for Health how often and on what basis the Ministry of Finance re-assesses the annual value of private properties for purposes of property tax; and, in the light of the substantial drop in the value of property and rentals, whether the Ministry intends to review property tax assessments.

Dr Tony Tan Keng Yam: Mr Speaker, Sir, property tax is payable at 23% of the annual value. Annual value is the estimated rent at which the property can be let in a year: A property is reassessed when there is sufficient evidence to show that its existing annual value is different from the current fair market value. Because of the large number of private properties, reassessment is carried out in phases, district by district, with priority given to areas which need more immediate attention.

Consideration is given to current conditions in the property market. Any property owner who is dissatisfied with the reassessment can protest to the Property Tax Department or lodge an appeal against the reassessment with the Valuation Review Board.

Mr Jeyaretnam: May I ask the Minister what is the sufficient evidence that he says that the Comptroller of Property Tax requires before he takes steps to amend the annual value?

Dr Tony Tan Keng Yam: Sir, the sufficient evidence is that which is deemed sufficient by the Comptroller of Property Tax.

Mr Jeyaretnam: Does the Minister not know what this is? Would the Minister assure this House that the Comptroller of Property Tax will take note of the substantial reductions in the rentals of properties, particularly in the Central Business area?

Dr Tony Tan Keng Yam: Sir, yes.