Tenants Bear The Brunt

Source : TODAY, Thursday, November 15, 2007

Checks needed to ensure landlords don’t pass on tax rise to tenants.

Letter from CHRISTINA P ONDEVILLA

I refer to the report, “Taxman raises HDB property value, most unaffected for now” (Nov 13).

Mr Donald Han, the managing director of property consultancy firm Cushman and Wakefield was quoted as saying: “… the Government will look at ways to ensure those who benefit pay their dues”.

If the purpose of raising taxes is to “look at ways to ensure those who benefit pay their dues”, measures must be put in place to ensure that the increase in taxes will not be passed on by the landlords to the tenants, in the form of higher rentals.

Isn’t the purpose of the move to tax property owners and not those who rent properties?

I know that many landlords pass on the extra costs to their tenants. When I used to rent a flat in Ang Mo Kio, the landlord did just that.

Rents have already increased tremendously. However, the increase in rental prices is not in line with the increase in salaries.

If nothing is done to protect tenants or those who rent properties, many expatriates may consider leaving Singapore.

Some of my expatriate friends from the United States and Europe working here are contemplating moving to places like Hong Kong or Dubai, because of the rising cost of living in Singapore.