Property Tax is really so PEANUTS in Singapore, PAP should stop exploiting poor people in Singapore to reward rich people.
Really tiny peanuts property taxes collected in YA2017 at S$4.4 billion, ( which is worse than mediocre especially by Emeritus Snr Minister Goh Chok Tong and his wife personal standards) https://www.theonlinecitizen.com/2018/0 ... ots-event/ :
However, the amount of GST collected was already shockingly high at S$11.1 billion; and GST is a regressive tax mind you that.
pict from: https://sbr.com.sg/economy/news/singapo ... ue-68-502b
For most Singaporeans, property is a measure of wealth (Annual GST credits and hospital means testing is based on residence property annual value). However, many Singaporeans are just scraping a living to get by.
The large amount of wealth (relative to a tiny income contribution to GDP fraction) just sloshing around in Singapore is evidenced by the fact that wage share of GDP is just a low of approx 42% as at 2016:
Property tax is more akin to a tax on ostentatious consumption, which should be the focus of an egalitarian government but PAP seems to choose to protect the rich at the expense of the poor by not increasing property taxes through progressive taxation but instead raising GST to 9% by 2021 https://www.straitstimes.com/singapore/ ... 1-and-2025 , deceptively using Scandinavian rates of 25% VAT as reference to mislead Singaporeans into acceding, unfortunately, there are hardly any comparable welfare benefits in Singapore which are the norm in Scandinavian states.
Wouldn't the worsening wealth divide in Singapore be better targeted by increasing property taxes in a progressive fashion using progressive personal income tax scales as a guideline? As of 2017, property tax collected is WORST THAN MEDIOCRE AND REALLY PEANUTS because at measly $4.4 b, it is only 39.6% of the $11.1 billions in GST collected.
Even raising commercial and industrial property tax is unlikely to signifantly increase costs of living that much because poor people will have the discreation NOT to shop at opulent and expensive touristy locations like orchard road or Marina Bay Sands area but travel out further to warehouse and factory outlet locations.
TOP TIER TAXES ON CONSUMPTION (/ostentatious shows of wealth/ consumption like palacial residences) SHOULD AT ALL TIMES EXCEED TAX RATES ON INCOME, since wealth is afterall an accumulation of EXCESS (superfluous) income. Cash wealth cannot be taxed because it can be easily concealed in cash, equity, gold, bitcoins etc. However, all Singaporeans serve NS for no salary to defend land, as such, those who live in big and opulent properties (some on >50,000 SQ ft FREEHOLD land and worth >S$93 million https://www.edgeprop.sg/property-news/m ... apore-2018 ) ought to shoulder the majority burden of the stupendous SAF budget to protect the value of their properties which run into many millions of dollars as compared to leasehold HDB flats.
[Letter to Today] NS a duty, not a job — thus no ‘salary’: Mindef
It is only decent for the PAP to raise GST AFTER the amount of property tax collected is in excess of the amount of GST collected and at no time should the amount of GST collected ever exceed the notional amount (nett of govt grants) of property tax revenue collected by the government of Singapore.
For now, since the wage share of GDP is approx 42% with capital (wealth/ earnings from rent) contributing the other other approx 58%, I would like to propose that target total property tax collection should be 58/42* $11 billion= S$15.19 billion, a $10.79 billion vacant margin of increase over the current measly $4.4 billion p.a. collected.
PAP must exhaust the increase in property tax on rich towkays in Singapore before fleecing or scamming the poor people in Singapore.
Lastly, PAP pls be aware that nobody will respect those who exploit (bully) the weak and those who cannot defend themselves, no matter how much u earn. Respect is earned and not given:
"If the annual salary of the Minister of Information, Communication and Arts is only $500,000, it may pose some problems when he discuss policies with media CEOs who earn millions of dollars because they need not listen to the minister's ideas and proposals. Hence, a reasonable payout will help to maintain a bit of dignity."
- MP Lim Wee Kiak apologises for comments on pay
SHAME ON YOU PAP,
You are a BULLY and COWARD.
Property tax should be tiered using the following income tax scale as guide:
pict source: https://www.3ecpa.com.sg/resources/sing ... -tax-rate/
All principal amount tiers may be shrunk by multiple of approx 4 and the respective tiers be taxed according to income tax tiers in a progressive manner: e.g. the first $5,000 in annual value is zero rate tax. The first $80,000 AV attracts $11,138 property tax, thereafter it's 22%.
PS: There are approx 2800 good class bungalows (GCB) in Singapore (with explicit laws to restrict kids and poor people from trespass into the vicinity), "The Urban Redevelopment Authority (URA) has opted to gazette Good Class Bungalows GCBS with 39 areas protected. The explanation for this was to protect the high environmental quality of these established massive bungalow areas from the intrusion of more intensive forms of housing like semi-detached or patio houses." https://www.goodclassbungalows.com.sg/about-gcb/ the average price of a GCB is S$21.3 million according to https://dollarsandsense.sg/heres-salary ... singapore/ and described in the table below:
Table showing Singapore Housing Prices by type and salary requirements for approved bank loans.