We refer to Ms Emily Yap Yong An’s letter “Look into property tax burden for seniors living in private properties” (Aug 28), and thank her for her feedback.
Property tax (PT) is a tax on property ownership, and our primary means of taxing wealth. The PT regime is progressive, where the higher the value of the property, the higher the property tax imposed. To encourage home ownership, owner-occupied residential properties are taxed at lower concessionary rates than non-owner-occupied properties.
In 2023, market rents increased significantly, which resulted in the annual values (AVs) of properties, and hence PT, to rise as well. To cushion the impact of the PT increase on owner-occupiers, the Government has provided a PT rebate of up to 100 per cent, capped at $1,000.
In addition, it was announced at Budget 2024 that the AV bands of the owner-occupier PT rates will be raised from January 2025. This means that all home owners can expect to pay the same or lower PT bills at each AV level (assuming no change in their AV and before any rebate).
We recognise that there can be retirees living in higher-end properties whose cash-flow issues are exacerbated by their PT bills. To help them, the Inland Revenue Authority of Singapore has extended the interest-free Giro instalment plan for PT bills from 12 months to 24 months, for owner-occupied residential properties held by eligible retirees aged 65 and above.
We remain committed to supporting our seniors. For instance, the Government has put in place broad-based subsidies for healthcare, and other support measures such as the Majulah Package MediSave Bonus and Assurance Package MediSave top-ups for eligible seniors, regardless of property type.
At Budget 2024, we also provided support for Singaporean seniors, including those living in private properties, but with more help for the less well-off seniors. Examples of these schemes include the Budget 2024 Cost-of-Living Special Payment in September, and the Assurance Package Cash in December. Singaporeans may visit the Support For You Calculator website (go.gov.sg/supportforyoucalculator) to find out the estimated benefits they may be eligible for.
We will continue to review our PT regime to ensure that our overall system of taxes and benefits remains fair and progressive, and that those with greater means contribute more and more help is given to lower- and middle-income Singaporeans.
Farah Abdul Rahim
Director, Communications and Engagement
Ministry of Finance
