Adjusting the Buyer's Stamp Duty (BSD) Rates for Higher Value Properties on and after 15 February 202306 Mar 2023
Parliamentary Question by Mr Lim Biow Chuan:
To ask the Deputy Prime Minister and Minister for Finance (a) whether he can explain the rationale for adjusting the Buyer's Stamp Duty (BSD) rates for higher value properties on and after 15 February 2023; and (b) how does the imposition of a condition that the Option to Purchase has not been varied on or after 15 February 2023 before allowing the prevailing BSD rates on and before 14 February 2023 to apply help meet the policy consideration.
Parliamentary Reply by Senior Minister of State fo Finance, Mr Chee Hong Tat:
The revised Buyer’s Stamp Duty (BSD) rates will make our BSD regime more progressive by having higher rates when buyers purchase more expensive residential and non-residential properties.
The transitional provision and its three conditions are similar to those implemented for the Budget 2018 BSD rate adjustments, and past Additional Buyer’s Stamp Duty (ABSD) rate adjustments. These conditions are designed to ensure that the prior BSD rates apply only to pre-existing Options to Purchase (OTPs) that are granted on or before 14 February 2023, even though they are exercised shortly later. There is a condition that the OTP should not be varied on or after 15 February 2023 to minimise gaming by buyers hoping to circumvent the revised BSD rates.
Buyers who are unable to fulfil the conditions of the transitional provision due to extenuating circumstances may submit an appeal to IRAS.