EQUALITY OF SINGAPORE RESIDENTIAL PROPERTY TAX SYSTEM

Abstract

This study attempts to examine the equality of the Singapore residential property tax system. The main objectives of the research are to determine whether the current property tax system has achieved both the vertical and horizontal equity, to appraise the assessment performance of Inland Revenue Authority of Singapore, to find out whether the 4% tax rate across all owner-occupied housing is justifiable. The assessment ratio study and the multiple linear regression are used to assess the equality of the residential property tax system. The results of the study show that the Singapore residential property tax system is lacking in equality. Although most of the taxpayers are satisfied with the current tax rate, this does not imply that the taxpayers are satisfied with the equality of the tax system as the tax rate is only one of the many determinants of equality. The tax system is lacking in vertical equity and the authority's assessment performance for the public residential properties is extremely poor despite having achieved horizontal equity. In addition, the authority has failed to consider important equity issues in determining the annual value.