THE INCIDENCE OF THE PROPERTY TAX IN SINGAPORE

Abstract

Much controversy surrounds the issue of the incidence of the property tax. The tax has often been criticised as a regressive tax. This exercise examines the property tax and its incidence in Singapore as compared to Britain and the United States. Since 1961, the property tax has been utilized successfully as a fiscal instrument to achieve various economic objectives. There is a dearth of micro-level data on property taxes paid in Singapore by individual households. A survey was therefore conducted in order to determine the incidence of the property tax in the public owner-occupied housing sector. It was found that the property tax comprises only less than 1 per cent of average household income. The incidence of the property tax is not regressive as is generally thought to be the case in Britain and the United States.