Remove The Additional Buyer’s Stamp Duty for Singaporeans.
According to National Development Minister Lawrence Wong, it is "too early" to relax the property market cooling measures, due to it can cause a market rebound in reply to the requirement from Mr Christopher De Souza- Holland Bukit-Timah GRC MP who asked The Government to remove ABSD for Singaporeans, while retaining the TDSR for Singaporeans and the ABSD for foreigners.
“By retaining the TDSR, the Singaporean is only going to be allowed a credit line that is within his means. By retaining the ABSD for foreigners, we help ensure that the foreigners will not enter the Singaporean market in an overly speculative way," Mr.Christopher said.
However, "The Additional Buyer’s Stamp Duty (ABSD) was introduced to moderate the demand for residential property from investors, non-citizens and corporate entities. Singapore citizens who do not own any residential property do not need to pay ABSD," Mr Wong replied..
The Additional Buyer’s Stamp Duty (ABSD) is tax paid on the acceptance to Option to Purchase (OTP) / Sale; Purchase Agreements. These are documents (i.e. OTP or S&P) that are prepared and signed when you buy or sell your property. Stamp Duty is payable on the actual price or market price whichever is higher.
Currently, an ABSD of 7 per cent for the second property will be paid by Singaporeans and up to 10 per cent for third and subsequent property purchases. Meanwhile, ABSD for foreigners is set at 15 per cent for first and subsequent property purchases.
The TDSR is a framework that limits the amount borrowers can spend on debt repayments to 60 per cent of their gross monthly income.