Levy property tax only when there is realised gain

http://www.straitstimes.com/STForum/...ry_463639.html

Dec 8, 2009

Levy property tax only when there is realised gain


IT IS not equitable to place any property tax burden on HDB flat owners who do not receive any rental income.

Property tax as a form of indirect taxation should be levied only if there is any realised gain on the sale of the HDB flat, or if it generates income via rent.

Also, the increase in property tax due to the increase in the market value of flats is nothing but lame. Most of us HDB flat owners do not gain any benefit from such increase in market value as it is considered 'unrealised' gain.

Taxation should be levied only on actual realised gain, whether it is capital or revenue in nature.

Martyn Lee

then when it's realised they will complain that due to taxation they can't afford to upgrade as the taxman took his slice.

Sorry, property tax is a tax on the ownership of an immovable property, not a tax on capital gains or profits of a sale.

If property tax is waived (already heavily discounted) for HDB flats, then the private properties would be asking for an equitable treatment.

This means the government will stand to lose a big chunk of revenie and they must make it up by increasing some other taxes such as the GST.

We want that to happen?