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Property Tax Is Not A Tax On Unearned Income

5 May 2006

This article has been migrated from an earlier version of the site and may display formatting inconsistencies.

We refer to the letters on the Progress Package by Law Sin Ling "Why should we pay tax on unearned income?" and Bin Hee Heng "Only scrutinize those who appeal for a better payout" on 28 April 2006.

2. Property tax is not a tax on unearned income, but a tax on immovable properties levied on the owners based on their ability to afford them. It is thus payable regardless of the type of activity carried out on the premises or the profitability of the activities.

3. Appeals for higher amounts of Progress Package are considered on a case by case basis, where the appellants claim that their personal situation have not been correctly assessed from the records the Government has on hand. In addition, Singaporeans who need extra help can also approach their Community Development Councils, which have other sources of funds, like the ComCare Fund, to help those in financial difficulty.

HAN KOK JUAN
DIRECTOR (SOCIAL PROGRAMMES)
MINISTRY OF FINANCE

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