Press Releases
Extension of 2001 Off-Budget Measures - Property Tax Rebate And Petrol Excise Duty Reduction
10 December 2002
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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 31st 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 1st 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.
Table caption
Illustration The annual value of a commercial property is $90,000. The property tax payable for the 6-month period from 1st January 2003 to 30th June 2003: Property Tax Payable without rebate = 10% x $90,000 x 0.5 = $4,500 Property Tax Payable after rebates = (1 - 30% rebate) x ($4,500 - $4,000) = $350 Tax saving = $4,500 - $350 = $4150 |
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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
Grades of Petrol | Excise Duty (from 25 Nov 1998 to 12 Oct 2001) | Excise Duty (from 13 Oct 2001 to 30 Jun 2003) |
|---|---|---|
Premium | 40% of pump price without GST, or $0.50 per litre (whichever is higher) | 35% of pump price without GST, or $0.44 per litre (whichever is higher) |
Intermediate | 40% of pump price without GST, or $0.47 per litre (whichever is higher) | 35% of pump price without GST, or $0.41 per litre (whichever is higher) |
Regular | 40% of pump price without GST, or $0.42 per litre (whichever is higher) | 35% of pump price without GST, or $0.37 per litre (whichever is higher) |
MINISTRY OF FINANCE