PROPERTY TAX REBATE FOR COMMERCIAL AND INDUSTRIAL PROPERTIES (Extension to residential properties)

Mr Tay Beng Chuan asked the Minister for Finance whether (i) the property tax rebate for commercial and industrial properties announced as part of the off-Budget measures can be extended to residential properties since the property tax of 12% applies to all properties with the exception of owner-occupied property; and (ii) the Government will consider expediting its re-assessment of annual values of property in order to reflect significantly lower market prices.

Dr Richard Hu Tsu Tau: Mr Speaker, Sir, the property tax rebate is intended to ease the cost of doing businesses in Singapore. It is therefore granted only to commercial and industrial properties, and not to residential properties.

On the question of re-assessment of annual values, IRAS has in fact already expedited the review of private properties. Since January 1998, about 47% of the private properties have already been reviewed. The balance of private properties will be reviewed before the end of this year. In the meantime, property owners can also inform IRAS if their new rents have fallen below the annual values of their properties, so that a review of these properties can be done earlier.

Mr Jeyaretnam: Is the Minister aware that if perhaps the Government, at this present juncture, grants a rebate to private property owners also, that might help them in their difficulties with the banks which are asking them to top up the loans because of the high mortgage rates?

Dr Richard Hu Tsu Tau: Of course, any rebate given in whatever form would help individuals. But I have said earlier that our objective, at this stage, is to help businesses reduce operating costs so that they can remain in business and provide jobs. This is our focus.

Mr Jeyaretnam: Am I to understand that the Government does not propose to do anything to help these home buyers?

Dr Richard Hu Tsu Tau: I have not said that we do not intend to do anything, but we have to select the time and opportunity.

Mr Jeyaretnam: When?

Dr Richard Hu Tsu Tau: We will see.