Gelphu Mindfulness City (GMC) in Bhutan adopts Singapore’s Property Tax Act 1960 to develop GMC to align economic growth with well-being and rebuild land values. The Act establishes a transparent framework, calculates Annual Value (AV) through potential rental income (Section 2(1)) and aligns taxes with market realities. This market-driven approach ensures fairness, eliminating arbitrary valuations. The GMC may appoint a chief valuer to maintain a public valuation list (section 10), giving details of properties and assessed value, enhancing trust. Ensuring taxation on verifiable data means that the law establishes stability, enabling confident transactions with clear, legally anchored rights and obligations for buyers and sellers.
Anchoring taxation to annual value (AV)—5% of a property’s market value—may put pressure on efficient land use in GMCs. Vacant plots in high-potential areas (eg, near planned infrastructure or commercial corridors) carry steep tax burdens, encouraging owners to develop or sell to avoid rising costs. Investors can target prime parcels, betting on appreciation, while sellers of undeveloped land face discounted offers because of tax risks. This dynamic fueled GMC’s rapid growth and land prices.
