Impact of diesel tax hike, foreign labour leads debate

Singapore

THE impact of the diesel tax hike and the tightening of foreign manpower quotas on businesses, and issues of long-term fiscal sustainability dominated the second day of the Budget debate in Parliament on Wednesday.

Members of the house voiced their concerns about the ability of firms - especially small and medium-sized enterprises (SMEs) - to cope with the changes unveiled by Finance Minister Heng Swee Keat on Feb 18.

Member of Parliament (MP) Lee Bee Wah pointed out that the lack of warning or lead time about the doubling of diesel excise duties to S$0.20 a litre has hit many service providers.

"They have contracts signed with the old price and they are not allowed to claim for material price fluctuation," she said, war…