THE REVISED DEVELOPMENT CHARGE SYSTEM IN SINGAPORE

Abstract

Development charge, which was first introduced in 1965 under the Planning Ordinance, was to provide for a flexible and effective control of development in Singapore. Development of any land must be with the written permission of the Competent Authority. Any development that is (1) in excess of the existing average population density or plot ratio allowed for any part of the island or (2) involving an alteration to the specified proposals in the Master Plan, is subject to a development charge. The Planning (Development Charges) Rules 1965 were replaced by the Planning (Development Charges) Rules 1980 which were amended by the Planning (Amendment) Rules 1981. When the imposition of a levy based on 70% of the enhanced value of the land was introduced. The Planning (Development Charges) Rules 1989 replaced the old development charge system when the Revised Development Charge System was first put into effect. The Revised Development Charge System (RDC) depicted a fixed rate table that consists of the demarcation of Singapore into 17 zones with 47 geographical sectors and 8 categories of use groups. This study has attempted to explore the merits and demerits of this Revised Development Charge System and to evaluate the performance and efficiency of the system. The RDC system provided certainty as well as simplicity to the users, however, it has sacrificed some accuracy for uniformity and its assumptions have many undesired implications. Nevertheless, the Revised Development Charge System has achieved satisfactory results. However, it can still strive for perfection with further refinement and improvement.