tax rate for industrial, commercial and let out
residential properties was reduced from 15 per
cent to 13 per cent last year. Nonetheless, our
property tax rate is still higher than some neighbouring
countries. This is exacerbated by our relatively
high property values. I announced in previous
Budgets that the property tax rate would be lowered
to 12 per cent over 4-5 years. To help reduce
business costs and further enhance Singapore's
competitiveness, I have decided to expedite the
reduction of property tax rate. With effect from
1 July 1996, the property tax rate will be reduced
by 1 per cent from 13 per cent to 12 per cent.
The revenue loss is estimated at $118 million.
The Government strongly urges landlords to pass
on the savings in property tax to their tenants.
JTC, HDB and othestatutory boards will pass on
the tax savings in full to their tenants.
The 4 per cent concessionary
tax rate for owner-occupied residential properties
will remain unchanged.