Projected Collection of Property Taxes in FY 2023/2023 Relative to FY2022/202307 Feb 2023
Parliamentary Question by Mr Liang Eng Hwa:
To ask the Deputy Prime Minister and Minister for Finance (a) what is the projected collection of property taxes in FY 2023/24 relative to FY 2022/2023; (b) what are the contributing factors to the rise in annual values of residential properties; and (c) how can the impact of property tax increases to the low- and middle-income homeowners be further mitigated.
Parliamentary Reply by Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong:
Property Tax (PT) is based on the annual value (AV) of the property, where AV is the estimated annual rent of the property based on market transactions for similar properties.
For 2023, AVs increased due to higher market rentals. As a result, the PT payable has also increased.
To mitigate the impact of the higher PT in 2023, the Government has provided a 60% PT rebate to all owner-occupied residential properties, up to a cap of $60.
With the rebate,
a. Those who live in a 3-room HDB flat will see an increase in PT of not more than $2.60 per month.
b. Those who live in a 5-room HDB flat will see an increase in PT of not more than $4.40 a month.
The estimated PT revenue for FY2023/2024 and revised PT revenue estimates for FY2022/2023 will be released on 14 February 2023, through the Budget 2023 revenue and expenditure estimates.