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Snapshots of Hot Issues

28 Nov 2011, 4.49PM
2 comments & replies |by REACH Administrator | Snapshots of Hot Issues
In conjunction with the opening of the 12th Parliament on 10th Oct 2011, REACH introduced a microsite to provide background information on the Parliamentary proceedings, and to provide a platform for our contributors to share their views on the inaugural address of our newly-elected President, as well as the addenda to the President’s Address. In all, over 600 inputs were received. We thank you for taking the time to share your views with us. Here, we bring you some highlights of what our contributors had to say!

Government-Citizen Engagement
Many welcomed the calls to enhance Government-citizen engagement, though some remained sceptical as to whether this could be realised. They urged the Government to be sincere and to showcase its commitment to better engage the public through concrete actions, instead of just words. They also urged greater transparency in sharing information with citizens. Some also expressed scepticism as to the neutrality and independence of the mainstream media, noting that this was a key reason many sought out alternative views on new media platforms.

Inclusive Growth and Social Well-Being of Singaporeans
While supporting the Government’s intention to seek inclusive growth for all Singaporeans, some point out that the term “inclusive growth” lacks definition. They wonder why the fruits of Singapore’s growth do not seem to filter down to the common man. They urge the Government to better define its commitments through clear targets and regular reviews.  A few also note that more can be done to strengthen Singapore’s social safety net, such as refining the ComCare schemes, CPF top-ups for “in-risk” and “at-risk” groups, and using household per capita as criteria to assess assistance cases.

Housing
The Government’s effort to prioritise the housing needs of newlyweds and vulnerable families are generally well received. However, they stress that housing is a basic necessity, and that the term “affordable” is subjective. Some call for the cost price of public housing to be revealed, noting that a 30-year loan for public housing certainly cannot be deemed “affordable”. Calls to refine existing policies to limit the resale market of three-room flats to low-income earners, and expand the HDB rental scheme are also supported. A few stress that any policy refinements considered by the Government should seek to primarily benefit Singaporeans instead of PRs.

Foreigners & Employment
Despite the stated emphasis to pay special attention to lower-income and elderly workers, contributors remain concerned over the availability of jobs for older workers.  While they welcome the review of the CPF contribution for older workers, they hope that more will be done to assist retirees and middle-aged Singaporean workers who may have lost their jobs to younger, cheaper foreign workers.
Selected Contributors’ Quotes from REACH’s Platforms:

“Be transparent with your information, and trust that Singaporeans, especially the younger generation who are generally more educated than their parents, can distinguish misinformation when it occurs.” – Sg Watcher, REACH_Singapore Facebook

“I think the minister should be more transparent to the public of the real cost of the public housing, not affordability by his own definition.” – Guest, Discussion Forum

“I hope HDB can focus on their fundamental policy to provide good and affordable housing for Singaporeans. The resale prices are still hitting new highs, and with it, the new flat prices… Our young couples buying their first homes are overburdened with high mortgages, please help to accelerate the stability of the housing market.” – Guest, Discussion Forum
44771 views  |  2 comments & replies  |  Add a comment
Guest
12 Dec 2011, 11.09PM
On the topic of housing related matters, this year will be the first year property tax is raised & take on a progressive tiered approach. But overall, the tax is raised (if you remove the $55 one-time rebate); couple this with the recent 10% stamp duty on private property purchases, one has to seriously ask "is the Government interfering too much? & taxing too much?"

For the tax issue, I want to argue, majority of Singaporeans took 20-30years to pay off the mortgage, they should not be charged property tax for the primary residence which is a 99years leased property from HDB. This will be in line with many developed countries and the principles of taxation. I hope the IRAS should take a serious review on its property tax; taking away a TV tax & re-impose a higher property tax based on revised higher annual value is like giving its people by left & take away by right again. The principle of taxation should be to imposed on a government share on income generated due to production of goods & services (thus in turn GDP); primary residence does not yield any income to the owner-occupier and thus this group of people which is 100% of citizens, should not be taxed at all. The tax should only be levied on rental income but take in to account of common maintenances expeneses and thus only the net rental income should be tax on.
Its really bad when government tax while its people are living in its leased flat, then tax again when the house is sold (through HDB's levy) and tax again when private investors try to profit from their property investments (at 10%! how long a property will appreciate to reach that?).
It seems like all the "Bao Jia" Sure eat good deals are taken by government (its the biggest landlord & it tax on all the remaining private landlords out there also).

As for the real housing issue, the price of property especially its HDB flat is directly affected by supply & demand which is its population. We are in our 3rd generations now, our 4th generation will be owning their houses in less than 2 decades. One has to ask, do we really need to increase our population further? We are one of the highest population density city state in the world, what about our quality of living? What about our productivity growth? Must we only rely on population growth to prope our economy growth? Must the government's budget grow year after year? Why cant the government increase its productivity like the rest & reduce its tax year after year?
Guest
5 Apr 2012, 10.23AM
Property tax rate for owner-occupier is 4% and for rental is 10%, both on the same AV basis.

One derives income from rental while the other does not, yet the rental unit owner only pays 6% more in property tax!  Majority of people owns only 1 property for their own stay.  Only those who are rich enough can afford a second property to rent out for income generation.  Yet, they pay only 6% more in property tax!  The majority of poorer home owners are "subsidizing" the richer ones who earns extra income from their rental units.

And there are those people who had bought their HDB decades ago and renting out while they own a second private property.  These group of owners should also be subject to the same ruling to sell their HDB flats if they also own private property.  Otherwise, they are just using HDB flat as a tool to generate income, and contributing to the misallocation of resources and the public housing supply squeeze.

Those who live in landed property should also be taxed on their land annually especially in land scarce Singapore.

I hope some government agents can ENGAGE and RESPOND to the issue of fairness in property tax that are being raised in this website. Some have written very well thought out arguments and even offered suggestions on how the property tax can be amended, yet there are hardly any response to their voices.

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