51.

The property tax exemption was introduced in the FY98 Budget to address difficulties faced by developers during the economic crisis. The property development market has shown signs of recovery since. Property transaction volume and the property price index have seen a pick-up. Government has also decided to resume residential land sales this year. Tax exemption on property tax for land under development will therefore be withdrawn with effect from today. The change will only affect new projects. Projects which have been granted tax exemption will continue to enjoy the concession for a maximum period of 5 years or upon completion, whichever is earlier.