tqx wrote:You are still missing the point Property tax unlike GST is not based on consumption , you already pay 13% tax when you buy property as a foreigner at the point of buying
cherry6 wrote:
Transparent consumption (property) taxes with rebates to all- a way forward towards a modern, compassionate and productive society.
"Property tax and GST got no relation at all other than they are both taxes..."
Yes, they are all taxes, and tax is in general defined as a "charge against a citizen's person or property or activity for the support of government"...
(1) Income taxes (Pte n commercial (P&C)),
(2) Consumption taxes (broad sense)(P&C) and
(3) Fines and other charges (P&C)
(4) Temasek and GIC investment returns (+ etc).
I note that in your last post here (pg.4) U have linked a Wikipedia article about consumption taxes [wiki]to which I think refers to a layman definition of 'consumption taxes'- you could understand my definition of 'consumption' as anything involving consumption of a service or good (or any activity involving such).
The most prevalent consumption tax, GST (wiki) is a base (basic) tax. It affects almost everything: the hamburger at Macs, your university fees, (even gold bullion- until Oct2012 at least [link]), but property is excluded because property tax existed BEFORE the implementation of GST; to avoid too much turbulence upon introduction and increase in GST, PAP avoided disturbing the existing property tax structure born eons ago. But since Mr Tharman is thinking of increasing revenue by 2017 'New ways to raise revenue needed, says DPM Tharman'[TDY02Mar2012 (pict)], I just though a gentle reminder that he had unfinished homework wouldn't hurt much.
Petrol and Road taxes used to be a base consumption tax for the use of motor cars until LTA added COE to it so as to limit the car population on roads to those who could afford such luxury. ERP was another addition to make some roads pricier than others. True there might be some duplication of taxes (GST is payable to the cost price of petrol which already includes IIRC 50c/litre fuel tax) but each has been enforced not without reason.
The recent exorbitant high stamp duty for foreigners of 10% is probably an overkill, a bit like 'killing the chicken to scare the monkey' [Chinese Idiom: 杀鸡儆猴-sha-ji-jǐng-hou], a symbol of desperate government policy. I shall refrain from commenting too much about this stamp duty other than the fact that it is blunt measure which does little to affect a foreigner ALREADY holding on to a Singapore residence solely for the purpose of speculation/ investment and that it is likely a short term measure which will be lifted when property prices lower (/ as insurance against a property price crash where-in-which it may be removed) (/ even a citizenship advertorial notice: to make SG citizenship/ PR more attractive to foreign property buyers).
The 3% 'stamp duty' I believe is perhaps too high and reminiscent of the days where renewal of driving license cost $20 annually. Much labour was involved and for their upkeep, the bureaucracy collected monies, the 3% was then standard (applied to shares too I believe)- but bureaucracy shouldn't cost this much today with the help of modern technology.
Property tax remains a consumption tax in so far as the annual value is a quantifiable sum. Many arguments might arise as to its assessment which is I think why the govt is dragging its feet in leveling it up with the GST and not pursuing cheats- however, it remains a loophole and an abnormality in the taxation scene in Singapore today and is as much cause for inflated property prices in Singapore today as it is burden upon the poor who do not own their own property which they reside in (HDB or otherwise).
I hope not to be arguing with Singapore property investors. You all have my condolences, but at least I'm making my concerns known transparent and early.
Rgds
C6.
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Thread:
HWZ:
11May2012: Property in Singapore taxed less than food and water...why?
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