Analysis: Wealth taxes on inherited property, luxury cars are 'attractive' suggestions by MPs, but challenging, costly to enforce

Experts interviewed by TODAY pointed to administrative challenges such as classifying luxurious goods to be taxed further and how the wealthy can get around an inheritance tax by gifting a property.

The proportion taxed should be higher for more expensive properties, going up to 25 per cent for Singaporeans and 35 per cent for foreigners, broadly in line with current Additional Buyer's Stamp DutyHowever, experts said that while this suggestion might sound attractive, the cons outweigh the pros. In 2008, the country had abolished its estate tax — which includes a deceased person's assets such as cash and properties — due to low tax revenue collected and to attract entrepreneurs to relocate to Singapore, which the Government said would benefit society as a whole.He added that an inheritance tax as suggested by Mr Thomas “will be quite easy for families to plan around by gifting their properties to the next generation during their lifetime".

“For example, many middle-class voters in the United States believe that an inheritance tax will affect them when it actually does not… so because there is poor understanding , there would be very little political support for these new taxes.” “These buyers may not be happy to spend more, but they also know it becomes more certain when somebody owns that GCB, they are part of the elite.”

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Analysis: Wealth taxes on inherited property, luxury goods and cars are challenging, costly to enforceSINGAPORE — A tax on luxurious goods such as high-end cars and landed property as well as an inheritance duty on multi-million-dollar homes may seem like plausible ways to protect Singapore's meritocracy, but it can be challenging and even costly to implement and enforce such measures.
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Higher taxes for the rich, mandatory preschool attendance among MPs’ proposals to close gaps in societySINGAPORE — Higher taxes on the rich for their cars and property were among some suggestions proposed by Members of Parliament (MPs) to protect meritocracy and level the playing field in Singapore for people to achieve their goals. The suggestions were raised on Monday (April 17) during a debate on What is the root of the problem to all these issues that Singapore is increasingly facing ? Otherwise it will just like a plaster covering up a wound but beneath the wound is rotting and soon, the pain would increase and at some point in time will require amputation ?
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