Property gains tax proposed because of earlier feedback

Speaking at a community event on Sunday, Second Finance Minister Lim Hwee Hua said certain property investors had wanted more certainty regarding the current rules.

Proposed changes to tax individuals who sell property before a four-year period were designed to shed some light on what defined a trader who sells property as a main source of income.

Public consultations were held, where more than 90 per cent of respondents said the system should be kept simple.

Property observers agreed with them, saying the current rules would avoid confusing sellers - which is critical in a recovering property market.

Analysts also said foreign investors are looking into Singapore as a potential market, so any adjustments to the tax regime may send them the wrong signal.