PRIVATIZATION OF SINGAPORE PROPERTY TAX ASSESSMENT SYSTEM

Abstract

As Singapore seeks to remake its economy, the challenge is to be innovation-led, spearheaded by strong private-sector companies instead of being state-driven. This study examines the feasibility and desirability of privatization of the property tax assessment in Singapore. A sample survey of tax assessors and private-sector valuers was conducted to ascertain their views with regards to the efficiency of the current system, and the acceptance of the self-assessment system. The results of the survey indicated that the current property tax assessment is not so efficient after all. Significantly, the assessors do not favor the self-assessment system, not because of the fear of possible job loss, but its failure to provide a fair and adequate tax base. In contrast, private-sector valuers are more inclined towards privatization as they envisaged that they would have more business. Overall, the feasibility and desirability for privatizing the Singapore property tax assessment is rather low. The notion that privatization will lead to higher productivity, lower cost of production and enhanced efficiency does not seem to hold in the case of property tax assessment. It is not going to provide a miracle cure for all the problems associated with the public sector activities, nor can private sector guarantee that the public interest is most effectively served. Although there is not a strong case for the privatization of property tax assessment, it might become feasible in the future as the economic climate changes.