7 things to look out for in Budget 2022

FINANCE Minister Lawrence Wong will be delivering the 2022 Budget statement on Feb 18, his maiden Budget since becoming Finance Minister at the last Cabinet reshuffle. This year's Budget is likely to roll back Covid-19 business support as the government plans for the post-pandemic era.

1. GST hike details

Ending months of speculation, Wong is set to reveal exactly when the long-foreshadowed goods and services tax (GST) hike from 7 per cent to 9 per cent will take effect, and whether it will be implemented at one go or in 2 steps. Some economists expect it could kick in as early as this July.

2. Property-related 'wealth taxes'

The government has hinted at some form of wealth tax - but not the conventional sort. Observers expect this to be property-related: perhaps higher property tax or buyer's stamp duty rates, or a capital gains tax on the sale of luxury residential properties.

3. Carbon tax and the green agenda

The revised carbon tax rate for 2024 will be revealed, with watchers believing it will be raised to the previously-announced rate of S$10 to S$15 per tonne - a target originally set for 2020 - from S$5 now. More details on Singapore's net-zero transition plans are also expected.

4. Foreign manpower changes

Foreign labour will be 1 focus, with the government expected to tighten requirements for Employment Pass applications on the one hand, but perhaps also introduce measures to help firms tackle the current labour crunch.

5. Continued support for ailing sectors

Even as Singapore gradually transitions to living with Covid-19, some ailing sectors still require support. Help will be extended to industries still facing difficulties, like aviation and tourism.

6. Bolstering industry transformation

The transformation drive continues, with the Budget expected to help firms, especially local small and medium-sized enterprises, press on with efforts in areas such as innovation, digitalisation and sustainability.

7. Helping young couples start families

With marriages returning to pre-pandemic levels, the government is expected to unveil more support for young couples who wish to start families soon, such as affordable housing and cash handouts.