Budget 2022: Higher personal income taxes can be double-edged sword

WHILE Singapore continues to study options to tax wealth effectively, it will raise the personal income tax rate of top earners with chargeable income exceeding S$500,000 from 2024 Year of Assessment (YA).

Finance Minister Lawrence Wong said a wealth tax is an important part of the tax system to generate revenues and "help to recirculate a portion of the wealth stock into the economy, and in doing so, mitigate social inequalities''.

Ideally, he said, Singapore would seek to tax the net wealth of individuals, but this would not be easy to implement effectively.