Should the COE system for cars borrow ideas from the ABSD regime for homes?
Consider prioritising locals owning one car
[SINGAPORE] Living in a country with rising affluence but land scarcity, additional buyer’s stamp duty (ABSD) for home purchases and Certificate of Entitlement (COE) for vehicle ownership are personal bugbears.
ABSD was first introduced in 2011 and has been increased several times over the years for various buyer profiles.
As a local pays 20 per cent ABSD for the purchase of a second home, my dreams of owning another home to earn passive income to fund retirement needs are dashed. To buy a small condominium unit for S$1.2 million, I will need to fork out S$240,000 in ABSD, in addition to paying buyer’s stamp duty of S$32,600.
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