Tax burden to remain low – addendum to the President’s Address (Opening of 12th Parliament)

12 October 2011

In an addendum to the President’s Address on the Opening of the 12th Parliament, Mr Tharman Shanmugaratnam, Minister of Finance says that Government expenditure will rise as a percentage of GDP in the next 5 years. This to enhance the transport infrastructure, quality and opportunities in education, healthcare and housing,

The Minister reiterated Singapore must maintain a sound and sustainable fiscal system and that a resilient revenue structure has been put in place.

“Despite that, the overall burden of taxes on Singaporeans remains low by international standards, and will remain so”, says Mr Shanmugaratnam. Property tax and personal income tax schedules have also been reshaped to make the Singapore tax system more progressive.

Other issues touched upon are:

  • Key economic challenge is to improve productivity, as the way to increase Singaporeans’ incomes on a sustainable basis.
  • Greater resources to be invested into strengthening Singapore’s social safety nets.
  • Strengthening unity through an inclusive and caring society (eg encouraging charitable giving through significantly enhanced tax deductions and Government matching grants for donations to various schemes that improve citizens’ welfare, including long-term care for the elderly and services for the disabled).
  • Promoting a more effective Government by catalysing on the development of more e-services and delivery channels, encourage collaboration among government agencies and greater integration in the delivery of services to Singaporeans.

To view the full text of the speech, please click here.

Source: Ministry of Finance