The Business Times
business-time-50
SINGAPORE BUDGET 2023
·
SUBSCRIBERS

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

Future revenue could come from 10% GST, capital gains tax on property sales

google-preferred-sourceAdd BT as a preferred source
    • Corporate income tax is the largest source of tax revenue for Singapore, but watchers see limited room for raising the rate.
    • Corporate income tax is the largest source of tax revenue for Singapore, but watchers see limited room for raising the rate. PHOTO: YEN MENG JIIN, BT

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Annabeth Leow

    Published Tue, Feb 21, 2023 · 05:50 AM

    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.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Singapore Budget 2023fiscal policyTaxesSpotlight

    Copyright SPH Media. All rights reserved.

    Reuse this contentFeedback

    TRENDING NOW

    In this economy, the smartest bets might no longer be sitting an ocean away, but are waiting right here at home.

    ‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival

    Sales have rebounded in March after the year-end lull and seasonal Chinese New Year pullback.

    Near sell-out launches in March boost developer sales to 1,300 units after four slow months

    US President Donald Trump (left) with Chinese President Xi Jinping at a bilateral meeting on the sidelines of the Apec summit in Busan last October.

    China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result

    Lim's pay package includes about S$3.6 million as salary and around S$3.9 million as bonus, indicates the company's annual report.

    Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More