Singapore’s property tax revenue expected to increase by S$600m due to higher home valuations

Singapore's property tax revenue expected to increase by S$600m due to higher home valuations

SINGAPORE: According to Second Minister for Finance Chee Hong Tat, Singapore’s residential property tax revenue for 2024 is anticipated to be about S$ 600 million ( US$ 446 million ) higher than what was collected in 2023.

According to him, about two-thirds of the increase is contributed by components that are not owned by the user.

Following the announcement in November of last year that for taxes for the majority of homes may increase once more, Mr. Chee was responding to questions from the legislature from Pritam Singh, the leader of the opposition and the Workers ‘ Party. Singh asked how many more property taxes the federal anticipates collecting in 2024.

When Finance Minister Lawrence Wong stated that Singapore’s property taxes revenue was projected to increase by about S$ 380 million after a two-step hike to the tax rate, Mr Singh even asked Mr. Chee to understand the difference between the extraS$ 600 million expected and an estimate given at Budget 2022.

The higher than anticipated tax collection for 2024 was largely attributable to higher annual values ( AV ), which emerged as a result of higher market rentals for residential properties, according to Mr. Chee, who is also the Transport Minister.

The estimated monthly fee of the house, or AV, is used to calculate property taxes.

According to Mr. Chee, the Inland Revenue Authority of Singapore ( IRAS ) considers a property’s location, age, land and floor area, improvement work completed, as well as features like swimming pools, in addition to renting out similar properties throughout the year.

According to him, the majority of owner-occupied residential properties saw their Audio increase by more than 20 % for 2024.