We have heard countless times from different ministers on being too early to lift or even relax the property cooling measures, particularly the additional buyer’s stamp duty (ABSD) introduced in Jan 2013. What if the ABSD is here to stay and to merge with the existing buyer’s stamp duty (BSD)?
Perhaps when it is not an “additional” tax, buyers currently holding back will be more willing to embrace the new norm?
With the ever increasing sums needed for nation building, a steady stream of taxes is important to sustain Singapore’s growth as a nation. Social development has always been a big chunk of the nation’s spending at 52.9% in 2015, and as our population ages, more funds will be needed to cater for these social needs. Where do you think the money comes from?
Furthermore, in order to remain competitive in attracting foreign businesses and high net worth individuals to Singapore, corporate and income tax have always been kept low and it will most likely to stay like this.
So where do you think the money have to come from? Road tax, cars COE, Property taxes, stamp duties.
Okay you see the point.
Let’s say only 15% of citizens have paid 7% for their second property after the introduction of ABSD. Within the next two years, another 30% – 50% will accept the fate to pay the 7%.
Sooner or later, when half of Singaporeans have already paid the ABSD for their second property, it would somehow be seen as the new norm.
When the time comes, would it be easy to merge ABSD to the existing BSD?
And will there still be a mental barrier for buyers to wait further?