Lui Tuck Yew: HDB property tax raised next year to “avoid bigger increases later”
November 23rd, 2009 | 
Author: Written by Our Correspondent
Acting Minister for Information, Communication and Arts Rear-Admiral Lui Tuck Yew said that the property tax of HDB flats is being raised next year partly to avoid having to introduce a bigger increase later should home prices continue to rise.
He said:
“The problem is, the longer you defer it, the larger the increase will be…if HDB prices continue to go up.”
The property tax rate is 10 per cent of a property’s annual value which has increased with rising property prices.
HDB resale prices have risen a hefty 31.2per cent in the past two years and hit a record high in June this year.
The sky-rocketing prices are attributed partly to cash-rich PRs entering the resale market.
According to real estate agency ERA, 40 per cent of the buyers of resale flats are PRs.
An Indonesian PR forked out a record $653,000 for a 4-room HDB flat in Queenstown lately while he could well afford a similar-sized condominium in the suburbs.
Mr Lui also repeated the official view that Singaporeans will stand to gain from the rising value of their HDB flats.
“If they eventually need to sell…(it) releases more money for their old age,” he said.
However, Mr Lui did not elaborate further on where the homeowners will stay if they sell their flats in such an inflationary market. They will probably have to fork out more to buy another flat.
More than 85 per cent of the population live in public housing built by the government agency HDB. However, these are 99-year old leasehold flats whose sale and resale are subjected to a variety of conditions such as a minimum 5 year occupation period.
Government leaders and HDB officials have insisted that the rising prices of flats helps to “create wealth” for Singaporeans.
This prevailing misconception has been debunked by a research done by two NUS professors NUS professors Abeysinghe and Gu Jiaying showed clearly that “higher property prices, instead of creating a wealth effect, exert a significant and negative “price effect” on consumption expenditures leading to a fall in the average propensity to consume.” (read article here)
As house prices go up, the increase in the value of housing assets is accompanied by a concurrent rise in the financial liabilities of households, in the form of higher downpayments for purchase of residential properties and burgeoning housing loans.
Related articles:
>> Debunking the myth that rising prices of HDB flats create wealth for Singaporeans
>> Number of applicants exceed number of flats
>> HDB to increase supply of flats
>> Mah: don’t compare with prices in the past
>> ERA: 40 per cent of HDB flat buyers are PRs
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“The problem is, the longer you defer it, the larger the increase will be…if HDB prices continue to go up.”
What if it comes down? will the property tax be adjusted downwards? Can our bright Minister give us an answer?
What has got the Acting Minister for Information, Communication and Arts Rear-Admiral Lui Tuck Yew anything to do with HDB property tax?
Shouldn’t it be Mah Bow Tan job to tell us?
We pay them ridiculous salaries so they can save us money. Instead they keep increasing our fees and taxes so that they can pay themselves even more. Who needs world class ministers if all they can do is to increase our cost of living.
HDB prices have increased because they allowed an influx of PRs into Singapore. This is a jump in prices due to their own doing. It could be even deliberate that they could have an excuse to increase HDB taxes.
ERPs keep increasing because they fail to build more Expressways, some of which were promised and by allowin the car population to increase.
Who needs ministers who continue to look for opportunities to screw the people and pay themselves such obscene salaries? If indeed they are ‘geniuses’, it appears such ‘genius’ is used to find even more ways to make us pay more.
If they genuinely have the interest of the people at heart, then they are bunch of nincompoops, who have overpaid themselves!
If it comes down? The answer would be we have already increase so for the longer term we will keep it there. Please be reminded that for the long term it’s very clear it will go up (” longer you defer , the larger the increase – so there will be small increase regardless whether it’s short or longer defer). We are not idiots.
Is Lui, on behalf of MBT, telling us that the Government is going to manipulate property prices higher such that he is aware our property tax bill will get higher in the future or is Lui clairvoyant?
Or is this pre-election talking up of the economy in Cabinet solidarity?
Mr Lui also repeated the official view that Singaporeans will stand to gain from the rising value of their HDB flats.
“If they eventually need to sell…(it) releases more money for their old age,” he said.
However, Mr Lui did not elaborate further on where the homeowners will stay if they sell their flats in such an inflationary market. They will probably have to fork out more to buy another flat.
TR spot on with your answer, truly reflects what on the minds of common folks. Sell, then where to stay? Adm Lui probably not thinking when he make this statement or rightly he does not have to worry about it at all. Common folks are the ones worrying everyday till we die.
How ridiculous can you get ?
Is Lui Tuck Yew also telling us indirectly that we should start eating our future meals (for the years yet to come) to avoid not being able to pay for them if in the future ?
Why are they always throwing out lame excuses ? That was silly and an insult to the intelligence of Singaporeans.
On the same note, I would like Lui Tuck Yew to ask his cabinet to pay the future salaries of all civil servants now to avoid paying higher salaries for them when the market rates go up.
Can i use the same reason to ask my company to INCREASE my pay now??
Hike my salary now so that you can avoid BIGGER INCREASE later???
What a crap reason….
This is what we get from MILLION DOLLAR MINISTER???
it is like saying “it is better for us to f**k you now, than to f**k you harder later”
Folks,
If we have $million ministers talking this type of crap and not taking concrete actions to see why the prices of HDB flats
keep on going up, we are in trouble!
Is he giving us a hint that their salaries will be increased just by thousands otherwise they will have to increase by the millions?
Btw. why is he taking on the Ministry of Development’s post?
Since you are at it, might as well tell us how HDB ended up with a hefty $2billion loss!!
He is telling the poor citizens that there will be a progressive increase in property tax. Again, money is everything to them and they care nothing about the citizens of Singapore. If the people give mandate to PAP again, the following is certain to happen again:-
Transport hike,
Town Council Conservancy fee hike
GST hike
Ministers salaries hike
Medical fee hike
Khaw Boon wan imposed old folks to foreign lands
School fee hike
CPF minimum sum increased
2nd round of Utilities hike
Property hike
HDB hike
More influx of foreigners
Peasants wages further depressed.
and More good years for PAP.
People power is the only hope we have left before 2011 election.
How about increasing the property tax of PRs and foreigners who paid more than 20% over valuation for their HDB flats starting from Jan 2009? Keeping the rate for Singaporeans the same?
The rest of us do really NOT gain when prices of HDB flats go up. If we sell our current HDB flat, where can we go? Downgrade? That option is NOT available to all and the prices of smaller flats have also gone up as well.
If the Minister can anticipate that the TAX rate WILL rise eventually, he should do something about it? Maybe announce it with the relevant offset package to help Singaporeans? Give solution rather than excuses?
In a country like this tiny island republic,if you are poor,
chnaces are you become even poorer!
Why?…simply because the rich do not know when is enough!!!
you lose your job because the company needs to cut cost…cut cost?!…for survival? you see they then report more humongous
profits somehow or other,and then the CEOs and his lieutenants tell the greedy but gullible shareholders they have made a “bundle” and so they get an even bigger bonus for causing hardship to the honest hardworking workers!..bravo! bravo!
how clever?!
what is sustaianable profit numbers!today a billion…tomorrow,maybe a trillion?!
oh come on,when is your greed going to be satiated?
indeed,how bogus!!!
true blue singaporeans,time to wise up and let your voices be put into action in that sacred place when they enact laws that
screw up the common citizens!!!!
Think they need to recover the 54billions or more losss b4 next election.
BUT WHY TAKE IT OUT ON US ‘LESSER MORTALS’.
This is really laughable!
How can increasing tax be helping the people who are staying in the flat?
The tax rebates that was planned to helped home “owners” some relief from paying and paying is not even implemented, and they are already planning to take it back already!
Last time, left hand take, still can keep in the pocket for a short while, allowing the body to heat the money up a little before the right hand have to give it back.
Now, the left hand haven’t even take, the right hand is already waiting to give it back. Uniquely Singapore indeed!
>>What if it comes down?
That’ll be another “freak” event no doubt
His comments says the following:
Further and future price increases are inevitable… the government’s job is not to hold down such increases but to find ways to make them acceptable to the population. This begs the question, why aren’t they finding ways to keep the tax down? Doesn’t cheaper, better. faster apply to the government departments too? The ordinary citizens have no way of controlling the rising prices of flats, due mostly to demand from new citizens. This increases the sense of helplessness that most of us feel today. The minister is in fact saying, “too bad, if you want to live here, these are the terms and conditions. If you don’t like it, piss off, I’ve got thousands of people who will gladly take your place”.
The minister’s remarks show a level of callousness that is shocking. Does he even understand that many are trying to cope with the problems of today. Never mind the problems of tomorrow. Don’t preach to us about the big picture, we have enough problems coping with small details such as making the housing loan payments and putting food on the table. Doesn’t he realize when we sell our flats in the future, it will be a pittance after inflation has taken its toll. And where do we stay after that?
I just hope that he and his remarks are not representative of the government. Increasingly, such words and attitudes do nothing but reinforce my view that there is a vast gap in the views and perceptions of the government and the people. We have something unique and valuable to keep in this country (city?) called Singapore. We need a rude awakening to bring the ruling elite to its senses.
This “avoid larger increase” reason has been used to death, both when talking about raising electricity prices, raising MRT prices, and now raising HDB taxes.
Which would you rather have?
Scenario 1 (small increases now and all the time):
Year 1 – Pay S$100
Year 2 – Pay S$110
Year 3 – Pay S$120
Year 4 – Pay S$130
Year 5 – Pay S$140
Total paid: S$600
Scenario 2 (big increase later on):
Year 1 – Pay S$100
Year 2 – Pay S$100
Year 3 – Pay S$100
Year 4 – Pay S$100
Year 5 – Pay S$140
Total paid: S$540.
What a dumb reason to give saying raising now is to avoid raising more later. Real dumb.
Timing of HDB tax hike ‘avoids bigger increases later’
Why need to be taxed in the first place??? It should not be taxed at all!
And why must increase later? It should not have been increased at all!
Who is lui tuck yew?
An mp in tanjong pagar grc.
An acting minster for AIM.
A former chief of navy, studied chemistry in university.
Is him qualified to talk about property tax ? Is it his area of expertise?
No. Absolutely no.
What does he knows about finance ? did he studied finance in college? is he involved in MAS ? did he do any policy studies?
What a joke! answering for other ministry.
Why don’t he answer for Mindef too? on the loss of NSF life onboard RSN ship?
isn’t he a busybody? want to show he knows everything.
haha
same old wayang, either is “subsidy” or “rebate”
citizens take note, each and every times when the gahmen wants to increase taxes – these two words: subsidy or rebate will not fail to be mentioned in shitty times….Why? to make us, the citizens good feel!!!….like they are saying, we HELP you …. left side pocket in (we receive) and right side pocket out (we return and more than we received).
Please…. lah, $million minister – stop all these nonsense schemes, don’t keep fooling the citizens can or not.
“to avoid having to introduce a bigger increase later”
This phrase has been used several times b4 somewhere either for increase in Bus fare or MRT fare – I can’t recall.
Should be able to trace back sometime ago.
So what if property prices go up unless you have at least 2 or more properties continue to live in one sell the 2nd or 3rd and enjoy your profit.
Majority of Sporeans own only one flat and very likely is an HDB,once you sell of your flat where the hell are you going to live,if u downgrade after renovation and all nothing much left.
Of course the one who stand to gain most are the PAPies and their cronies,and all those who owns more than 1 or 2 properties.
They are the one who wants the prices of properties to hit the sky.I rather properties prices remain moderate,and prices of essentials,like food,utilities and transport remain low so that everyone do not have to worry about payments of bills at the end of every month.
this reminds me of a stroy behind chinese proverb 朝三暮四
宋国有一个很喜欢饲养猴子的人，人们叫他狙公。他家养了一大群猴子，他能理解猴子的意思，猴子也懂得他的心意。他宁可减少全家的食用，也要满足猴子的要求。然而过了不久，家里越来越穷困了，打算减少猴子吃橡子的数量，但又怕猴子不顺从自己，就先欺骗猴子说：“给你们的橡子，早上三个晚上四个，够吃了吗？”猴子一听，都站了起来，十分恼怒。过了一会儿，他又说：“给你们橡子，早上四个，晚上三个，这该够吃了吧？”猴子一听，一个个都趴在地上，非常高兴。
这个故事原来的意义，是揭露狙公愚弄猴子的骗术，其实橡子的总数没有变，只是分配方式有所变化，猴子们就转怒为喜
告诫人们要注重实际，防止被花言巧语所蒙骗。因为无论形式有多少种，本质只有一种
remember in one of the presentation by the nobel prize economist on GDP, he gave the example on trees: one you cut down the tree to make money, you have less trees to live on for.
The same thing with HDB flat. Once you sell, where are you going to live. Also, if you buy another one, you will have a bigger monthly loan to service because HDB loans end at 65 whatever age you start.
So, increasing hdb prices benefit the govt, through higher property tax…
Thank you, TR.
beginning of the yr gives out jobs credits and tax relief.. end of yr, take back all given out so as to recover wat is given out. But HDB property tax is affecting every single Singaporeans, even the 3 roomers who are only slightly better off if not the same as those 1-2 roomers. So SG citizens, pls wake up to reality for those who still belive that the gov will take care of u. Esp so for those who never buys/sells HDB property are also affected by the hike in property tax!
How much more would flow into the Coffers with this increase in taxation?
Where does this money go to ? National Reserves?
Talking about Lui, he has been appearing in Hougang GRC and I thought there is only 1 minister for the GRC. The default one is Mr George Yeo. I wonder would he be competing in this GRC?
Or would GY be transferred to another?
Minista,
why the need for more money (via taxation)?
Why people are forking out so much cash ?? But do they have any option ???I think most of the Singaporean who have roofs over head even cant imagine the condition of rental market …. the rent is so high and the house condition is so bad!!! even a filthy 1+1 hdb flat cost now more than 1100 dollars … if u have child nobody wants to give u rent … if u r other race than god bless u… last week we were looking for a 1+1 unit within our means ($1100-1200). And found house without paint and toilet were like sewage line …. inconsiderate people want to income money but don’t think to give minimum service…
Hey there cy,
Don’t be a racist. This is an English website.
i think the “poorest of the poor” in singapore now understand
better what is” squeezing blood out of stones”.
the ’smart” minister merely wants to justify his humongous
salary…plain and simple,lah.
i say never mind lah,we,common folks count for nothing…after
taking away our jobs,they want some more money…how to?
This Liu guy, the Rear Admirer, has demonstrated again and again to be a stupid person. I just wonder how he managed to get his scholarship and how those freaky people up there could have put him at where he is today???
His academic performance could have been derived from sheer mugging and pure luck? Low IQ and no EQ?
His rise to his present position could be due to rubbing shoulders or connections?
Just because he is stupid, he thinks that people are so stupid to believe in his twisted logic?
more pap bullshit that defies logic, like one man can constitute an assembly
STOP PAP BULLSHIT, VOTE THEM OUT, VOTE OPPOSITION
http://fashionablefacistdictator.wordpress.com/
i thought PM like to take his medicine in one big dose instead of in smaller doses like when they gave their ministers a big fat payhike in 2007?
why dun we postpone the tax increase until after the GE to see if the people will give you the mandate to do it?
SINGAPOREANS OPEN YOUR EYES, this is socialism for the rich and capitalism for the poor
TIME FOR CHANGE, VOTE OPPOSITION
When I was serving my full-time NS, Lui Tuck Yew was the Chief of Navy.
All I will say is that when they let military men run the country, very bad things will happen. Case in point: Yam Ah Mee and LTA and the ERPs.
We Are Not Stupid Lah
Don’t you know how that Lui guy got that minister job ? From day one after the elections he has been shouting Yessir this in the morning and Yessir that in the afternoon, but only Nossir in the night since he’s been a Rear Admirer like you said.
@And Justice For All
Wow,you really do your homework!
just check, you are right,this LUI is currently at the rear LHL’s Cabinet.
Do you think PAP empathize with the people by increasing property tax now?
How do the citizens benefit with property tax increasing sooner rather than later?
Do you think you had voted wisely in the past?
This is the PAP, people you have voted to ruin our life.
This is the PAP that has so mainly extremely highly paid minister, do you think they deserve their pay?
Hmmm…. I surrender!!! (Banging head against the wall…bang bang bang)
what kind of statement and reasoning is this coming from a minister?we all know the taxes will only go up and up. And we will have to pay n pay.
The only possible reason for Lui to announce property tax increases since he is not a minister for housing is that he will be housing minister after cabinet reshuffling.
Singaporeans it is time to wake up! We cannot afford to have $Millionairs ministers to lead us for the future! Low I.Q and No E.Q.We are really in Great crisis to had such a NUTS in our government. WE must united together to kick all these IDIOTS out and vote the good leaders in. SINGAPOREANS! IT IS TIME TO CHANGE ! Othwise we are going to suffer more in the near future! May GOD help us! UNITED WE STAND! SINGAPOREANS!
They screwed up and we pay for it. Why allow so many PRs in without building more flats? Stupidity knows no end even among such self-proclaimed ‘worldclass’ ministers.
Now after all the hullabaloo they say they need to build 10,000 to 12,000 flats a year, of course at the higher price.
They benefit from screwing up!
For all those who want to see a change in Singapore.
Do we see the opposition promising to Free the Media (to make SPH a private enterprise)
Do we see them promising to dismantle GRC?
Do we see them promising to lower MP Salary’s?
Do we see them promising to NOT raise taxes?
Do we see them promising to limit FT?
What do they really stand for, save non-PAP?
Or once in power (if) will they use the laws created by the PAP to become the New PAP?
Well there will be a time when all things must come to an end. I just hope that it does not happen to Singapore soon…. Look at the Dinosaurs, Roman Empire, Layman Brothers, it is only a matter of time…
There is a saying that the wealth of a family normally do not get pass the 3rd generation. You don’t keep what you did not earn ‘cos most often than not, you don’t know how to appreciate it with respect and care.
“Or once in power (if) will they use the laws created by the PAP to become the New PAP?”
Doesn’t matter. Just vote them out come election
“Or once in power (if) will they use the laws created by the PAP to become the New PAP?”
>> Doesn’t matter. Just vote them out come election <<
No, no no… our dollar is too valuable, cannot just anyhow gamble with any opposition.
5-6 years is a loooooooong time in politic, long enuf to ruin a lifetime of development.
“No, no no… our dollar is too valuable, cannot just anyhow gamble with any opposition.
5-6 years is a loooooooong time in politic, long enuf to ruin a lifetime of development.”
Yeah, Kiasi, Kiasu, Kia Cheng Hu
So… WHERE IS the Pappies’ Discipline in PROTOCOL and DECORUM IN THE LEGAL ARENA???… Has been like Western Cowboy Moviedom to all these years guy!!!… And…
“ErniesUrn on Mon, 23rd Nov 2009 11:48 am” is absolutely rightabout…
“What has got the Acting Minister for Information, Communication and Arts Rear-Admiral Lui Tuck Yew anything to do with HDB property tax?
Shouldn’t it be Mah Bow Tan job to tell us?”
complain got use meh… They’re still proven to be supported by 66.6% of singaporeans (majority) in previous elections… Despite having so many complains and furors here and there on the net, I don’t think these complainers actually voted for opposition in elections… With the proportion of ppl disagreeing with the gahmen on the net, opposition would have performed better in actual elections.
Mark my words, PAPA will still win majority seats in 2011… Singaporeans wanna pay for it.
To Non-Chinese on Mon, 23rd Nov 2009 6:07 pm
Thanks for reading my comment.i am not racist.
if you look at my history of posts, you will note that i post more english comments than chinese comments due to typing in chinese is slower.
also,this is not an english website,there is a section for articles in chinese
singapore is a multi-racial society, you could also post comments in malay or tamil, i have no problems with that.
please live and let live.
Hi folks…please refer to the below quote…
Quote from Thomas Jefferson
“We must not let our rulers load us with perpetual debt.
We must make our election between economy and liberty
or profusion and servitude.
If we run into such debt, as that we must be taxed in our meat and
in our drink, in our necessaries and our comforts, in our labors and
our amusements, for our calling and our creeds…
[we will] have no time to think,
no means of calling our miss-managers to account
but be glad to obtain subsistence by hiring ourselves
to rivet their chains on the necks of our fellow-sufferers…
And this is the tendency of all human governments.
A departure from principle in one instance
becomes a precedent for [another ]…
till the bulk of society is reduced to be mere automatons of misery…
And the fore-horse of this frightful team is public debt.
Taxation follows that, and in its train wretchedness and oppression.”
why does everyone assume there will be an election? is it not easy for people who come up with stupid reasons for any kind of policy to come up with a reason too not to have elections?
and what can you do about it?
//deoxin
As if the current PAP clowns are not losing your monies.
If one more opposition goes in and pap loses a minister, the remaining will work so hard to keep their million salary.
You shouldn’t be worried about opposition coming in.
Singapore is going down the hill since LHL become PM !!! He should be voted out in the next GE.