Desperate for money, the Singapore government yesterday (Feb 28) announced that they will raise development charges and taxes by an average of 22.8% – the highest in a decade – for non-landed residential projects. The development charges range between 12 to 38% depending on the area, and in addition to the top marginal Buyers’ Stamp Duty rate announced in the Budget, the new tax increases are estimated to generate hundreds of millions in tax revenues for the government.
The Ministry of National Development said it consulted with the Chief Valuer for the tax increase:
“The rates for non-landed residential developments will increase for a vast majority of areas across the island, ranging from 12 per cent to 38 per cent. The average hike of 22.8 per cent is the highest since September 2007 when DC rates rose by 57.8 per cent. The latest increases come on the back of a 13.8-per-cent average spike between September last year and this month.”
The new tax will cost property developers more during en bloc purchases. The Singapore government is expected to earn S$16 billion in land sales for 2018.