The property 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.