Jun 03, 2013

    Johor to raise taxes on foreign-owned property

    THE state government will impose higher tax rates for about 130,000 foreigners who own property in Johor.

    Johor Menteri Besar Mohamed Khaled Nordin said that the rates were still being discussed, but will be imposed by the end of the year.

    "I believe that most locals will be in agreement to this new policy and it is done to increase our state's returns," he said during a press conference, before conducting a walkabout in Permas yesterday.

    Datuk Seri Mohamed Khaled added that a re-evaluation exercise would be conducted statewide, as the last formal evaluation was done in the 80s.

    "Some of the local councils have conducted property evaluations in the last few years and this includes the Johor Baru City Council, which last did a property evaluation in 1991.

    "Taxpayers need not worry about the evaluations, as property taxes will be retained for lower-priced properties," he said, adding that higher taxes may be imposed for properties worth millions.

    Mr Mohamed Khaled said that the state had no intention of increasing the financial burden of the people, but also needed to increase the returns to ensure that the local councils can provide better facilities and services for locals.

    More Singaporeans have looked to Johor for property as prices have spiked, particularly in the newly-developed Iskandar region, where Singaporeans make up about 80 per cent of all foreigners buying homes.