Development Charge Replaced With Land Betterment Charge
SINGAPORE – The government announced that the Land Betterment Charge (LBC) rates for 23 September 2022 to 28 February 2023 have been revised, according to a press release published by the Singapore Land Authority (SLA) on Thursday evening (22 September, SGT).
Notably, the Land Betterment Charge Act came into effect on 1 August 2022. This charge replaces the Development Charge (DC), Temporary Development Levy (TDL), and Differential Premium (DP) regimes.
In particular, the LBC rates for commercial use have increased by 5.4 percent on average. Of Singapore’s 118 geographical sectors, 116 recorded an increase in LBC rates ranging between 3 percent and 8 percent for commercial use, while the remaining 2 geographical sectors registered no change.
Notably, the biggest LBC hike of 8 percent for commercial use applies to the following geographical sectors:
• Sector 1 (Cross Street / Collyer Quay / Fullerton Square / Philip Street / Telok Ayer Street/ Raffles Place Area)
• Sector 2 (South Bridge Road / South Canal Road / Phillip Street / Church Street / Pickering Street)
• Sector 3 (Hill Street / Victoria Street / Seah Street / Beach Road / Ophir Road / Nicoll Highway / Esplanade Drive / City Hall Area)
• Sector 4 (Victoria Street / Rochor Road / Ophir Road / Beach Road / Seah Street / Bugis Area)
• Sector 5 (Nicoll Highway / Suntec City Area / Ophir Road / Raffles Avenue / Promenade Area)
• Sector 6 (Collyer Quay / Fullerton Road)
• Sector 7 (Stanley Street / Cecil Street / Shenton Way / Cross Street)
• Sector 8 (Maxwell Road / Erskine Road / Amoy Street / Telok Ayer Street)
• Sector 10 (Kee Seng Street / Gopeng Street / Palmer Road / Keppel Road / Cantonment Road)
• Sector 11 (Shenton Way / Straits Boulevard / Marina Boulevard / Raffles Quay)
• Sector 12 (Bayfront Area / Marina Bay Sands)
• Sector 17 (New Bridge Road / Cross Street / Telok Ayer Street / Pickering Street)
• Sector 18 (Havelock Road / Outram Road / Pearl Bank / Chin Swee Road)
• Sector 19 (Kim Seng Road / Robertson Quay Area / Mohamed Sultan Road / Clemenceau Avenue / Havelock Road)
• Sector 20 (Clemenceau Avenue / River Valley Road / Eu Tong Sen Street / Havelock Road / Clarke Quay Area)
• Sectors 41 to 43 (Cairnhill Road / Orchard Road / Somerset Road / Exeter Road / Buyong Road / Cavenagh Road / Scotts Road / Orchard Road / Orchard Boulevard / Bideford Road / Nutmeg Road / Mount Elizabeth / Claymore Road / Tanglin Road / Cuscaden Road / Grange Road)
• Sector 60 (Thomson Road / Irrawaddy Road / Tan Tock Seng Link / Mandalay Road / Central Expressway)
• Sector 88 (Mount Faber / West Coast Highway / Keppel Bay / Labrador Nature Reserve)
Just the like Development Charge, the Land Betterment Charge will be reviewed every 6 months in consultation with the Chief Valuer.