Singapore Budget 2013 - More progressive tax structure for properties & cars
More progressive tax structure for properties and cars
A more progressive tax structure will be introduced for properties and cars.
The new property tax schedule for owner-occupied homes will ensure that most retirees will end up paying less property taxes.
The zero per cent property tax rate band, which currently applies to the first S$6,000 of annual value of properties will be widened to S$8,000.
Currently, property tax rates for owner-occupied residential property are at zero per cent, four per cent and six per cent, depending on the annual values of the properties.
In addition to the current four per cent and six per cent tax rates, the government will introduce new rates of eight per cent to 16 per cent.
The widening of the zero per cent property tax band will enable 950,000 owner-occupied residential properties to enjoy some tax savings.
High-end investment properties will also see significant increases in tax rates. Instead of the current rate of 10 per cent flat, they will be increased to between 12 per cent and 20 per cent.
There will be a new tiered Additional Registration Fee (ARF) structure for passenger cars and taxis.
The ARF for car models with an Open Market Value (OMV) of up to $20,000 will remain at the current 100 per cent but the next $30,000 of the car's OMV will be taxed at 140 per cent. Any value beyond S$50,000 will attract an ARF rate of 180 per cent.
The changes will apply to vehicles registered with Certificates of Entitlement obtained from the first bidding exercise in March 2013.
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