Why property tax must be levied on vacant homes
10 Dec 2013We thank Mr Geoffrey Kung for his feedback ("Don't levy tax on vacant properties"; last Tuesday).
Property tax is a tax on wealth. It is thus levied on the ownership of properties, irrespective of whether the property is occupied or vacant.
In line with this policy intent, we will remove the property tax refund for vacant properties with effect from Jan 1 next year.
Besides property tax, there are no other forms of wealth taxes in Singapore.
The tax is also payable on owner-occupied properties, although at a concessionary rate.
We appreciate that some owners of unoccupied properties may be in the process of looking for rental tenants or are keeping the properties vacant for personal reasons. However, as such properties form part of the wealth of the individual, it would be fair to levy property tax on the properties.
Lim Bee Khim (Ms)
Director, Corporate Communications
Ministry of Finance