Press Releases

The property tax rebate and reduced petrol excise duties and diesel tax on taxis in the 2001 off-budget measures will be extended for another 6 months. Overall, the extension of both measures will result in additional cost savings of about $308 million to businesses and motorists.

Property Tax Rebate

2 All commercial and industrial properties currently enjoy a fixed property tax rebate of up to $8000 per year, plus a rebate of 30% for any balance property tax payable till 31^st December 2002. This rebate will now be extended for another 6 months.

3 A fixed rebate of up to $4,000 will be granted for all commercial and industrial properties for the property tax payable for the six-month period from 1^st January 2003 to 30th June 2003. In addition, a 30 % rebate will also be given for the balance property tax payable for the same period. The total tax savings for businesses are estimated to be $280 million.

4 The example below illustrates the potential tax savings a typical commercial property will enjoy from the property tax rebate extension.

Petrol Excise Duty and Diesel Tax on Taxis

5 Petrol excise duty and diesel tax on taxis will be kept at the current reduced rates. The reduced excise duty rates for various grades of petrol are given in the table below and the diesel tax on taxis will remain at the reduced rate of $4,700 annually. A review will be conducted at the end of June 2003. This extension will yield additional savings of about $28 million for motorists and businesses over the period of the extension.

Table:Excise Duty Rate for Various Grades of Petrol

MINISTRY OF FINANCE