Speeches

Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Overview of the Bill

The Bill seeks to repeal the Property Tax (Surcharge) Act with effect from 1 July 2006. This change was announced by the Prime Minister in his 2006 Budget Statement.

The Property Tax (Surcharge) Act was enacted in 1974 to impose a surcharge, in addition to the property tax payable, for certain classes of properties held by foreign owners before 1 January 1974. The purpose then was to discourage foreigners from holding onto these properties during the time of housing shortage. The surcharge is no longer needed as firstly, we now regulate property ownership by foreigners through the Residential Property Act (RPA), and secondly, most of these landed properties bought before 1974 have either been sold to Singaporeans or to other foreign owners who have obtained approval under the RPA and who therefore are not required to pay the surcharge.

Key provisions

Sir, Clause 1 introduces the Act and states that it will be in effect from 1 July 2006.

Clause 2 repeals the Property Tax (Surcharge) Act.

Conclusion

Mr Speaker Sir, I beg to move.