Singapore recorded a significant hike in tax revenue due to the additional buyer’s stamp duty (ABSD) introduced in January, reported The Straits Times.
The Inland Revenue Authority of Singapore (IRAS) stated that the government collected around S$158 million in ABSD from February to March. A total of S$1.03 billion has so far been collected since December 2011 when the measure was first implemented until March this year.
Foreigners accounted for most at S$580 million for 3,041 homes, while Singaporeans and permanent residents (PRs) paid S$386 million for 7,269 units. On the other hand, non-individuals contributed S$66 million for 285 units, reported IRAS.
Meanwhile, S$66.6 million has been collected in seller’s stamp duties (SSD) since it was introduced in 2010.
Experts noted that despite the property taxes, buying activity remains healthy as developers continue to offer discounts and incentives.
In fact, about 30 to 40 percent of buyers at new launches are purchasing their second, third or subsequent homes, said Alan Cheong, Research Head at Savills Singapore.
“They are creating reasons to buy. It could be for rental income when the population grows to over six million, capital gains or to hedge against the possibility of their children not being able to afford homes in the future,” he said.
Source : PropGuru 6 May 2013