Better to deal with living costs directly than using tax tool
Tax remedies not the best way to tackle widening income gap in Singapore
[SINGAPORE] Changing the tax system is neither the only nor the best way to tackle social inequality. It may be more effective to address directly the rising costs of living that exacerbate income gaps, said participants at a pre-Budget roundtable organised by BT.
While there have been suggestions to raise the top marginal personal income tax rate or broaden the income bracket for which the top rate applies, KPMG head of tax Tay Hong Beng and EY head of tax Chung-Sim Siew Moon both think such moves would be "very difficult".
That could send the wrong signal to the global talent that Singapore still hopes to attract, especially since comparisons are often made between Singapore's top marginal personal tax rate of 20 per cent and Hong Kong's 17 per cent.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
New Articles
HDB resale prices accelerate, rising 1.8% in Q1 on stronger demand
Digital Core Reit Q1 distributable income slips 2.4% to US$10.6 million
BT subscribers can now share 5 premium articles a month with unlimited number of non-subscribers
First Reit reports 3.2% lower Q1 DPU of S$0.006 amid interest rate, forex headwinds
Vietnam holds first gold auction in 11 years to stabilise market
How Hudson Yards went from ghost town to office success story