WITH reference to Tuesday’s article, ‘Home sales to stay weak next year’, I cannot help but ask the Inland Revenue Authority of Singapore (Iras) why it is not reducing property tax for the coming year.
Official Urban Redevelopment Authority private and public housing sale transactions and rents dropped by 20 to 25 per cent in the second half of last year, compared to the year before, but Iras revised most property taxes upward by some 25 to 30 per cent in April-May. It said the annual value of Singaporeans’ properties was in line with the general reassessment of similar properties.
I have just received my property tax and TV licence fee bill for this year. It is disappointing that Iras does not look at the worldwide economic downturn, which affects Singapore. Singapore already faces a recession and property prices have plunged by 20 to 25 per cent in the past year since the United States subprime crisis surfaced.
Many expatriates have left or will leave Singapore as a result of multi-national companies’ cost-cutting exercises. With a surplus of 11,500 condominium apartments coming onstream this year, it is obvious that private as well as public property rents will come down.
Iras always ask property owners to submit their notice of objection to the Chief Assessor of Property Tax, but frankly I doubt many of us have the time and resources to do it.
I appeal to Iras to be more proactive and lower 2009 property taxes by 20 to 25 per cent for all property owners to alleviate our burden.
David Goh
Source : Straits Times - 1 Jan 2009
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