“SICK AND TIRED” OF TAX INCREASES
Property owners who spoke with CNA were divided on their views towards the hike.
Mary (not her real name) said in an email to CNA that she was “upset” about the latest increase in non-owner occupied property taxes.
The 58-year-old who works in the electronics industry said she came from “a very poor family” and worked hard to reach a higher income – enough to own two properties, of which one is tenanted.
“The Government is always focusing on helping the low- and middle-income. Have (they) ever considered that there are people who choose not to work hard and study hard … to enjoy the financial benefits from the Government?” she said.
At the moment, Mary pays about S$1,200 in property taxes a month, which adds up to about S$15,000 of property tax for 2021, she told CNA.
The increase in property taxes should be a “case-by-case basis”, she added.
“Some people inherit it from their parents and they may not be rich but they have to suffer the high tax. Some people worked very hard, like me, but I have to pay high taxes. For example, my company gave me a S$300 monthly salary increment but I had to pay S$400 more tax per month because I have a second property,” she said.
“Some people are very rich and they can easily afford and own properties; tax is nothing to them as they are cash-rich. Some rich people evade tax by using their children’s name to buy properties – I know of friends who did this.”
Mary said she may consider selling her investment property as she is “sick and tired” of rising taxes and has “no means” to continue to “suffer high taxes”.
But she won’t raise the rent for her tenants to cushion the impact of the tax hike, as the rental market is “very competitive”.
TAX INCREASE “STILL DOABLE”, HELPS LOWER-INCOME
On the other hand, another owner who only wanted to be known as Li Fen told CNA that the tax increase is “still doable”.
“It’s definitely a pain, it’ll definitely hit your pocket, but only because we see it as over S$1,000, almost S$2,000. But if you divide it up monthly, it is a couple of hundred dollars. So I think it’s still doable,” said the 44-year-old owner of two tenanted properties.
Unlike Mary, the tax increase wouldn’t prompt her to sell her investment properties, she added.
“You know, home ownership comes with a lot of costs, you have insurance, property tax, maintenance and things like that. In fact, the maintenance charges (can be) higher than the property tax itself. So I don’t think all this will affect the decision to sell a property, especially if you can get a good rental yield. It simply makes the rental yield lower.”
In fact, Li Fen said the ability to pay taxes means “you’re privileged enough”, and there are people who’d “rather pay taxes than to be poor”.
“I can understand why the Government does this, because you really want to tax those who can afford it. If you tax the super-rich billionaires and millionaires, they’re not going to stay in Singapore. They’re going to move elsewhere where the taxes are low, and in the end, who’s going to bear the tax burden? Normal people like us.
“So I think if you spread out the tax a little … I mean, I’m not saying don’t tax the rich. Yes, we should still tax them. But not a sudden increase.”
Li Fen added that the percentage increase is “okay”, since initiatives to help residents, such as the Jobs Support Scheme, would depend on taxes.
“A lot of things have increased (in price) … even before the GST (Goods and Services Tax) has been implemented. So I think the lower-income group has been suffering, and if we can pay a little more tax just to make their lives easier, I’m quite okay,” she shared.
“I’m really not paying a lot; the increase is not so bad that it’s going to bankrupt me. I may just get less rental yield. But if I can help the poor, then okay, I’m fine with that. It’s like redistribution of riches.”
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