Singapore can pay for higher social spending without hiking income taxes for the time being: analysts

SINGAPORE’S ambitious social agenda can continue to be funded without drastic new tax moves – at least in the near future, watchers have told The Business Times. But if new policies require more revenue, possible sources include further goods and services tax (GST) hikes and property-related taxes.

Budget 2023 – which beefs up support for parents, seniors, and lower-income workers – is expected to run a deficit of about S$0.4 billion, or 0.1 per cent of gross domestic product (GDP).

Watchers do not expect personal and corporate income tax hikes to be announced in 2024, especially given last year’s personal income tax increases and the two-step hike in the GST rate.