Forum: Higher progressive tax on higher-end residential properties

We refer to Mr Edmund Maury Baker’s letter, “Review property tax concessions for owner-occupied homes in prime areas” (Feb 7).

Property tax is a tax on property ownership. As Mr Baker has noted, owner-occupied properties are taxed at a lower concessionary rate than non-owner-occupied properties.

As announced in Budget 2022, property tax rates are being raised for higher-end residential properties over 2023-2024. This property tax rate increase affects fewer than one in 10 owner-occupied residential properties. In 2023, the annual values of residential properties have also risen in line with market rental transactions. Given these two factors, the property tax for a landed property with desirable attributes, such as a bungalow in a prime location, would see a sharper increase in 2023.

The Government continues to review our property tax regime to ensure that our overall system of taxes and benefits remains fair and progressive, and that those with greater means contribute more.

Property owners who need assistance with paying their property tax can apply for interest-free Giro instalment payments through the myTax Portal.

Farah Abdul Rahim
Director, Communications and Engagement
Ministry of Finance

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