Singapore’s PM says taxes are set to increase as investment needs and social spending grow

PM Lee Hsien Loong speaks on the PAP Awards and Conference 2017 on Nov 19, 2017, at Massive Field.
The Straits Occasions

Rising needs within the areas of investment and social providers will quickly trigger for an increase in taxes for Singaporeans, Prime Minister Lee Hsien Loong mentioned on the Folks’s Motion Occasion (PAP) conference on Sunday (Nov 19).

A quickly ageing inhabitants, as an illustration, has prompted demand for healthcare providers to rise sharply, the PM mentioned.

Investments within the healthcare sector presently contain a myriad of developments from system restructure, the establishing of extra hospitals and care centres, as nicely as enhancements to MediShield protection with MediShield Life and ElderShield.

“These measures will preserve healthcare inexpensive to residents, however undoubtedly healthcare spending by the state will go up, has already gone up.

“These investments are for our financial system, for our infrastructure, and the spending on social providers and security nets, these are all mandatory and worthwhile. They are a vote of confidence in Singapore’s future,” Mr Lee mentioned.

In the course of the Finances announcement earlier this yr, Singapore’s Finance Minister Heng Swee Keat had additionally said his ministry was studying options for new taxes or raising tax rates “carefully”.

“Domestically, we will even face rising expenditures over the long term as we make investments extra in healthcare and infrastructure,” he mentioned.

Talking to 2,000 PAP members on Sunday, PM Lee mentioned: “For this present time period of presidency, we’ve got sufficient income. However our spending needs will grow. So Heng Swee Keat was proper when he mentioned elevating taxes will not be a matter of whether or not, however when.”

“Properly earlier than the time comes, we’ve got to plan forward, clarify to Singaporeans what the cash is required for, and how the cash we earn and we spend, will profit everybody younger and outdated,” he added.

In accordance to an economist quoted by The Straits Occasions, the Goods & Services Tax (GST) is the second-largest generator of government revenue, after corporate and personal income tax.

The identical economist mentioned the Authorities might implement the tax hike as early as subsequent yr as it isn’t seemingly to elevate taxes within the yr earlier than a normal election.

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