More progressive tax structure for properties and cars for greater social equity
A more progressive tax structure will be introduced for properties and cars to achieve greater social equity without hurting Singapore's competitiveness.
The 0% property tax rate band, which currently applies to the first $6,000 of annual value of properties, will be widened to $8,000.
Currently, property tax rates for owner-occupied residential property are 0%, 4% and 6%, dependi...ng on the annual values of the properties.
In addition to the current 4% and 6% tax bands, the government will introduce new bands of 8% to 16%.
Deputy Prime Minister Tharman Shanmugaratnam said 950,000 owner-occupied residential properties will be able to enjoy some tax savings.
High-end investment properties will also see significant increases in tax rates.
Instead of the current rate of 10% flat, they'll be increased to between 12% and 20%.
As for passenger cars and taxis, there'll be a new tiered Additional Registration Fee (ARF) structure.
The ARF for car models with an Open Market Value of more than $30,000 of vehicle's open market value will be 140%.
Any value beyond $50,000 will attract an ARF rate of 180%.
The changes will apply to vehicles registered with Certificates of Entitlement obtained from the first bidding exercise in March 2013.
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