Budget 2017 lays foundation, but much remains to be seen

THERE are very few tax changes in Budget 2017. While there are opportunities to simplify the tax regime and make it more competitive, these were not taken. Perhaps it is wise to exercise caution in this period of rapid global change. There are threats to global trade with the withdrawal of the United States from the Trans-Pacific Partnership, and challenges to other trade agreements. Gross domestic product growth in the developed world is already low and protectionism may be on the rise. Furthermore, disruption from digitalisation and technological advancements present dangers as well as great opportunities.

With this backdrop, the Committee of Future Economy (CFE) recently issued its report with seven key strategies. In many respects, Budget 2017 breathes life into the CFE recommendations. For example, there are targeted measures for small and medium-siz…