OTHER TAX CHANGES

Concessionary Tax Rate for Residential Properties Undergoing Construction

Currently, home owners who demolish their properties for reconstruction will have to pay property tax at the rate of 12% on the annual value of the vacant land. This is generally very much higher than the annual value of the residential house. As a concession, I have decided to allow home owners who rebuild their houses for their own subsequent occupation a concession during the period when their houses are undergoing reconstruction. These home owners will be eligible for the owner-occupier's rate of 4% on the annual value of the residential house. This concession will take effect immediately. All home owners who are presently rebuilding their homes will also be eligible for the concession.