The property tax of all HDB flats is projected to rise by 2010. According to Lui Tuck Yew, acting Minister for Information, Communications and the Arts, this move is partly to avoid having a larger increase later, if home prices continue to escalate.
Mister Lui conveyed the message on Sunday, when he was interrogated at a conversation with Aljunied-Hougang residents about whether the government could delay it, as the economic downturn has just begun to ease.
“The problem is, the longer you defer it, the larger the increase will be...if HDB prices continue to go up,” said Rear-Admiral (NS) Lui, noting that the adjustment had once been delayed.
He likewise remarked that the government is taking measures to lessen the impact of the tax increase in 2010. It provides HDB flat owners a one-time rebate, which is capped at $120 and set at 50 percent of the property tax payable. This signifies that families with low incomes and have homes with $50 and less property tax will not be required to pay any such tax in 2010.
The property tax rate is 10 percent of the annual value of a property, although HDB flats owners benefit from a concessionary 4 percent tax rate. The annual value has increased along with the growing prices of properties.
Resale prices of HDB flats have increased 31.2 percent in the last two years, and 3.8 percent from January to September 2009.
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