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                                                                                                                  on Saturday
                               the st regis                                 afgHaN
                              perspectives                                  WOMaN
                     john ryan, ceo                                           frEEd
                        of the center                                           buT
                         for creative
                          leadership                                        fOrcEd
                                                                          TO Marry                                        december 3, 2011 |
      avaILabLE aT MaJOr                                                 HEr rapIST
    SHOppINg MaLLS aNd aLL                                                                                    NEWS HOTLINE 6822 2268 | a pubLIcaTION Of                       | MIca (p) 200/02/2011
      STarbuckS OuTLETS                                                        world 23

Strong US job data
shine a ray of hope                                                       HdB property tax to rise,
                                                                          rebate to ease impact
WASHINGTON — The labour              a 210,000 gain from 158,000.
market in the United States un-           Economists had forecast
expectedly strengthened last         payrolls would rise by 120,000
month, with the jobless rate         last month and that the jobless
falling to its lowest level since    rate would remain at 9 per cent.     SINGAPORE — Property tax on Hous-            prOpErTy Tax cHaNgES fOr OWNEr-OccupIEd Hdb HOMES
March 2009 as private employ-             The job report is the lat-      ing and Development Board (HDB)
ers in the world’s largest econ-     est sign that the economy is on      flats is set to rise from next year, after                                    3-room      4-room       5-room     Executive
omy stepped up hiring in re-         firmer footing than it was just      annual values (AV) of HDB flats were
sponse to the gradual recovery.      two months ago, when fears of        yesterday revised upwards with ef-
                                                                                                                        range of annual property       s$0 to      s$60 to     s$96 to      s$108 to
      Stock markets welcomed         a double-dip recession mount-        fect from January to reflect the in-
                                                                                                                        tax payable in 2011             s$36        s$120       s$144        s$156
the data, with the Dow Jones         ed. The latest figures come less     crease in their market values.                range of annual property tax
                                                                                                                                                       s$$0 to     s$77 to     s$125 to      s$137 to
Industrial Average up 0.5 per        than two weeks before the US               However, the Government will            payable in 2012 after s$55
                                                                                                                        owner-occupied Hdb rebate
                                                                                                                                                        s$41        s$125       s$173         s$185
cent in early trade. In late Euro-   Federal Reserve’s next policy-       roll out a one-off S$55 rebate to
pean trade, London’s FTSE was        making meeting. After taking         cushion the impact on lower- and              range of increase in
                                     steps in August and September                                                                                     -s$7 to      s$5 to      s$17 to      s$17 to
up 1.4 per cent, Germany’s DAX                                            middle-income households. This is             property tax after s$55
rose 1.3 per cent, while France’s    to spur growth, the Fed is ex-       for flats that are occupied by their          owner-occupied Hdb rebate
                                                                                                                                                         s$5        s$29*        s$29         s$41
CAC gained 1.8 per cent.             pected to pause until next year      owners. The Ministry of Finance and          * The MajoriTy of four-rooM owner-occupied hdB flaTs will see an increase of
      The unemployment rate          as it assesses the US economic       the Inland Revenue Authority of Sin-         s$5 To s$17 in properTy Tax. only 2 per cenT of owner-occupied four-rooMers
                                                                                                                       will see an increase of s$29. SOurcE: IraS
fell to 8.6 per cent in November     landscape and follows develop-       gapore (IRAS) said in a statement
from 9 per cent in the previous      ments in Europe’s debt crisis.       yesterday that 94 per cent of all flat       in the HDB market rents in the pre-       and therefore have higher AVs.
month, the US Labor Depart-                                               owners will receive the rebate.              ceding year was small. The new AVs             The one-off rebate is a fixed
ment reported. The rate hadn’t       The unemployment                           All one- and two-room owner-           take effect from January 2012.            amount of $55 or the property tax
been below 9 per cent since                                               occupiers of HDB flats will con-                  Taking last year and this year       based on the 2012 AV, whichever is
March, when it was 8.8 per cent.     rate fell to 8.6 per                 tinue to pay zero property tax next          together, market rents have risen         lower. It will be automatically given.
The rate is now lower than at        cent in November,                    year, while those in three-room              by around 20 to 28 per cent. Ac-               The rebate will not apply to
any point since March 2009,                                               flats will on average pay roughly            cordingly, the AVs of all HDB flats       HDB flats that are not owner-oc-
when it was 8.6 per cent as well.    and is now lower                     the same tax as last year. Owners            will be revised upwards.                  cupied, which are currently being
      Mr Todd Schoenberger,          than at any point                    or four- or five-room flats will pay              Said Mr Ku Swee Yong, chief          taxed at 10 per cent.
managing director of Landcolt                                             S$5 to S$29 more for the year.               executive of International Property            Most HDB flat owners should
Trading, said on CNBC: “Today’s      since March 2009.                          The AV, which is reviewed an-          Advisor: “The increase is consist-        receive their property tax notices
jobs report is a game changer for                                         nually, is the estimated rent that a         ent with what we have seen in the         and bills by the end of this year.
Main Street. Americans will focus         Also underpinning market        property can fetch per year if it were       market, given that HDB flat prices        Property tax has to be paid by
on the drop in the unemploy-         sentiment yesterday was a re-        rented out in the open market. Prop-         have risen for the last four quar-        Jan 31 next year.
ment rate, rather than getting       port that a European proposal        erty tax is calculated at 10 per cent of     ters, sometimes in even greater                Owners can e-file an objection
into the weeds of how we got         to channel central bank loans        the AV of an owner-occupied home.            percentages than in the private           to IRAS if they do not agree with
there. Look for confidence and       through the International Mon-             The AVs of all HDB flats were          market. So it is to be expected.”         the revised AVs of their properties.
sentiment to improve, which          etary Fund (IMF) may deliver as      last revised in January 2010, taking              The IRAS arrives at the AV by        Information on payment modes
could translate into an improved     much as €200 billion (S$346 bil-     into account the changes in market           analysing the latest rents of compa-      and details of property tax and AV
outlook as we enter 2012.”           lion) to fight the debt crisis.      rents in 2009. They were not revised         rable HDB flats that have been rent-      revision are available at www.iras.
      US non-farm payrolls rose      Under the proposal, national                        this year as the increase     ed out, taking into account their Taxpayers with enquiries
120,000 last month as private        central banks would recycle                                                       location and flat type. Generally,        may call 1800-356 8300 or email
companies added a combined           funds through the IMF, poten-                                                     the bigger flats in better locations
140,000 jobs while the public        tially to underwrite precaution-                                                            fetch higher market rents
sector shrank by 20,000 jobs         ary lending programmes for
amid budget cuts. In another         Italy or Spain, the two countries
positive development, Octo-          judged to be the most vulner-
ber’s figure for non-farm pay-       able now, reported Bloomberg,
rolls was revised upwards to         which cited two people familiar
show a gain of 100,000 from a        with the plan. They declined to
previously reported 80,000 and       be named because the talks are
September’s was revised up to        at an early stage. agENcIES
                                                                                                                                                                                          TOday fILE pHOTO

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