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THE Inland Revenue Authority of Singapore (Iras) on Monday announced that it will revise the Annual Values (AVs) of most properties, including Housing Board flats, from Jan 1 to reflect the significant increase in their market rates.
The AVs will be raised for all HDB flat types, with those in more centralised and popular areas like Bishan, Bukit Timah and Marine Parade to be set higher than other areas.
An Iras statement on Monday said the average AV increase will be 20 per cent for 1-room and 2-room flats, 25 per cent for three-room units, 18 per cent for four-room flats, 20 per cent for five-roomers and 18 per cent for executive flats.
But it said the increase 'does not translate to proportionate increase in property tax actually payable, due to the property tax rebates that have been granted by government'.
Currently, the owners of all 1-room, 2-room and 13 per cent of three-room HDB flats do not pay any property tax because their property tax liability has been offset by the rebates which have been given since 1994 when the Goods and Services Tax (GST) was introduced.
'As part of the GST Offset Package announced in Budget 2007, all owner-occupied residential properties will be given an additional property tax rebate of up to $100 per year in 2008 and 2009, said the Iras statement.
'As a result, 90 per cent of all HDB flat owners will not pay more property tax in 2008 even after the AVs of their flats will be increased in 2008.'
It said one-room and two-room residents will not have to pay property tax, as well as 60 per cent of those in three-room units. The remaining 40 per cent of the three-room owners will be paying less tax than in 2007, but about 15 per cent of the four-room, five-room and executive flat owners will have to pay 15 per cent more in property tax, but this will be less than $40.
Iras said the AVs of all properties, which are reviewed annually, is to ensure that they reflect prevailing market rentable values for property tax computation. 'This year, most AVs will be revised upwards,' it said.
All HDB flat owners will receive their valuation notices and property tax bills by Jan 1.
Flat owners who need to pay property tax will also receive a Guide to Property Tax brochure explaining how the property tax payable is calculated and how payment can be made.
Property tax for 2008 must be paid by Jan 31.
Taxpayers with enquiries on AV revision or property tax can find more information at Iras' website at http://www.iras.gov.sg or e-mail Iras at propertytax@iras.gov.sg or call Iras on 1800-356 8600.
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