Development charges have been increased for non-landed residential, hotel / hospital and commercial uses.
The Ministry of National Development has revised the development charge (DC) rates for three use groups for the period from 1 March to 31 August 2017.
The DC is a tax levied when planning permission is granted to carry out development projects that increase the land value, such as rezoning to a higher value use or increasing the plot ratio.
DC rates for non-landed residential use increased by four percent on average. DC rates for hotel / hospital use rose by 2.6 percent on average, while commercial use saw DC rates rise by 1.3 percent on average.
On the other hand, DC rates for industrial use decreased by 3.7 percent on average.
The DC rates remain unchanged for landed residential, place of worship / civic and community institution, and other use groups.
The DC rates are reviewed on a half-yearly basis in consultation with the Chief Valuer at the Inland Revenue Authority of Singapore.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
