Singapore on Friday (Feb 18 2022) unveiled a slew of progressive tax measures aimed not only at generating revenues to fund major programmes needed over the next few years, but also at addressing social inequalities. In case you missed it, here are 12 highlights from Mr Wong's speech, in which he announced major tax changes and targeted help for various groups.
Support for firms
- Government to co-fund wage increases of lower-wage works.
- $600mil set aside to boost SME productivity, encourage R&D collaborations.
- $100mil set aside to help firms implement training and transformation plans.
- $500mil package for firms to cope with Covid-19 challenges
- Singapore to raise GST from 7% to 9% in two stages in 2023 and 2024
- Singapore is exploring to top up Multinational's effective tax rate to 15% minimum
- Higher personal income taxes for top 1.2% of taxpayers in Singapore
- Tax rates for residential properties to be raised, as Singapore adjusts wealth taxes
- Vehicle tax, COE revenue set to rise 15% to $6.46bil
The Budget was about not only revenue and expenditure, but also "what it means to be Singaporean, and what kind of society Singapore should be". The Budget also answered questions such as how the playing field should be levelled and what makes a fair bargain between individual and collective responsibility.
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