## Singapore Residents Brace for Property Tax Hikes
In Singapore, property tax is an essential part of the government’s revenue strategy. However, with the economic downturn caused by the COVID-19 pandemic, the Singapore government has announced that it will be raising property taxes for the 2021 fiscal year. This will affect many Singaporeans who own property and businesses in the city-state.
### The Proposed Tax Increase
The proposed property tax increase for 2021 will be 3.5 percent, which is the highest rate since 2013. The tax rate for non-residential properties will also be raised, from 13.5 percent to 14.5 percent. Additionally, the tax rate for residential properties will be raised from 8.5 percent to 9.5 percent.
The Singapore government is hoping that the increased tax rate will help to offset the cost of recent government spending on welfare and health care during the COVID-19 pandemic. The government also believes that the increased tax rate will help to reduce the cost of living in Singapore and make it easier for citizens to afford housing in the city-state.
### Impact On Property Owners
The proposed property tax hike will have a significant impact on property owners in Singapore. Those who own residential properties will be faced with an extra cost of approximately $25,000 per year, while those who own non-residential properties will be faced with an extra cost of approximately $50,000 per year.
The increased property tax rate will also have an impact on businesses in Singapore. Businesses that own non-residential properties will be faced with an extra cost of approximately $100,000 per year, which will likely be passed on to customers in the form of higher prices.
### Reaction From Singapore Residents
The proposed property tax hike has been met with mixed reactions from Singaporeans. Some believe that the increased tax rate is necessary in order to offset the cost of recent government spending on welfare and health care during the COVID-19 pandemic.
However, others are concerned that the increased tax rate will make it more difficult for citizens to afford housing in the city-state. They are also worried that businesses will pass the increased tax rate on to customers in the form of higher prices, which could further exacerbate the city-state’s already high cost of living.
### Conclusion
The proposed property tax hike in Singapore is sure to have an impact on both citizens and businesses in the city-state. While the increased tax rate is necessary in order to offset the cost of recent government spending on welfare and health care during the COVID-19 pandemic, it could also make it more difficult for citizens to afford housing in the city-state and cause businesses to pass the increased tax rate on to customers in the form of higher prices.