Property stamp duty yields $2b annually

[reporter2]

http://www.businesstimes.com.sg/sub/...74341,00.html?

Published January 19, 2012

Property stamp duty yields $2b annually

ERP system provides around $150m to Singapore coffers

By CHUANG PECK MING


(SINGAPORE) Stamp duty from property transactions add some $2 billion to the state coffers each year, while the Electronic Road Pricing contributes around $150 million.

Minister of State for Finance Josephine Teo told Parliament yesterday that in the last five financial years, starting 2006/07, the government has collected a total of $10.87 billion in stamp duty from the sale and purchase of properties.

She was replying to Lina Chiam, a Non-Constituency Member of the House, who wanted to know the figure.

Transport Minister Lui Tuck Yew, also in responding to Mrs Chiam, said that government collections from the ERP came to $149 million in FY2009, $159 million in 2010 and $97 million for up to October in 2011.

But he reminded Parliament that the ERP is a tool to manage traffic congestion, not to generate revenue.

'The (ERP) rates are set and reviewed based on the latest traffic conditions and the key measure of the effectiveness of the ERP is whether it's able to keep traffic speeds within the optimal range, rather than the amount collected by each gantry,' Mr Lui said.

The gantry at Nicoll Highway has the biggest ERP collection, averaging $32,000 daily. The smallest is $130, at Upper Boon Keng Road.

But Mr Lui said that the gantry at Nicoll Highway operates from 7.30 am to 8pm, minus the two hours from 10 am to 12 noon. The one at Upper Boon Keng Road runs for only half an hour daily, from 7.30 am to 8am.

Asked if, given the small collection, the government would scrap the ERP gantry at Upper Boon Keng Road, Mr Lui said that the gantry still serves a purpose.

It's part of the outer cordon through which vehicles have to pass to get into the city - and it's needed to control the movement of vehicles going this way, according to him.

'We have to make sure we have a cordon that's sufficiently effective. We look at the speed every quarter. When it's above the optimal range, then we have the option to reduce the rates or do away with it altogether.'

The last time he checked the gantry at Upper Boon Keng Road, Mr Lui said, the speeds recorded there were still within the optimal range. 'Hence we continue to operate the gantry.'

[Regulators]

No wonder our ministers got no qualms about paying themselves millions in salary coz money so easy to come for the gahmen, not forgetting got so many different kinds of other taxes

[hyenergix]

No wonder our ministers got no qualms about paying themselves millions in salary coz money so easy to come for the gahmen, not forgetting got so many different kinds of other taxes

The government has committed itself to many infrastructure projects, as well as to cover losses for its investment arms. If it crashes the property market, it will stand to lose the most. At stake is 2016 election. Therefore any further CMs will be softer and more symbolic, if any.