PROPERTY TAX (Reduction)

Dr Teo Ho Pin asked the Minister for Finance whether he will consider reducing the property tax rate for house-owners and companies in view of the financial crisis.

Dr Richard Hu Tsu Tau: Mr Speaker, Sir, home owners are already taxed at a low concessionary tax rate of 4% on the annual value of their properties. Further, with the property tax rebates given since 1994 to offset GST, currently the majority of HDB households living in one to four room flats do not pay any property tax.

Adjustments to the property tax payable by companies will be announced in my Ministerial Statement later on.