Property owners pay a tax based on the property’s estimated annual rental if it were rented out. As long as owner-occupiers perceive the tax to be based on a phantom income, rising property taxes will remain an issue.
The double-digit increases are too much and a fairer tax system for owner-occupiers is needed.
It is convenient to state that other countries adopt a similar system. As laymen, we do not know what concessions there are elsewhere or if property values are rising at the same rate as Singapore’s.
To alleviate difficulties faced by less affluent owner-occupiers, the initial tax-free element should be raised from S$6,000 to a figure more in line with the increase in property values.
From Peter Syddall
Source : Today – 2012 Jul 13