SINGAPORE, April 19 — 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.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.
Rajah noted that the increase in stamp duty announced during this year’s Budget is expected to collect another S$380 million a year — which is significantly more than the S$75 million collected yearly on average from Singapore’s previous estate tax for the wealthy. “In countries where there are inheritance taxes, surveys consistently show that middle-class residents have the incorrect impression of that tax,” Associate Professor Theseira, a former Nominated MP, said.
“As the value of these things go up due to tax, the value to the consumer also goes up. And this is because super cars, country clubs and GCBs are all examples of goods where their values are dependent upon exclusivity,” he added. “It may raise more revenue, but you spend a lot of resources trying to decide what should or shouldn't be subjected to this tax.”