Singapore to hike tax in effort to help poor

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cassie

Singapore, Singapore

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#1
Aug 22, 2013
 
Helping Hand:


Singapore to hike tax in effort to help poor



SINGAPORE, Nov 14, 2006 (AFP)- Singapore will raise its consumption tax next year to fund social programmes for its lower income households rather than turn to Scandinavian-style welfare systems, Prime Minister Lee Hsien Loong said in remarks published Tuesday.



Raising the goods and services tax (GST) from the existing five percent to seven percent will mean more money for new measures in education and healthcare to help poorer Singaporeans, The Straits Times newspaper quoted him as saying.
"It's essential for us to tilt the balance in favor of lower income Singaporeans because globalisation is going to strain our social compact," Lee told parliament Tuesday as he outlined his government's agenda for the next five years and beyond.

"That's why we are doing all this," he said, adding more details of the planned tax hike will be released when his government presents its annual budget in February.

In his speech, Lee, 54, ruled out Singapore ever adopting the generous welfare systems for which Scandinavian countries were known.

He said that system was unsuitable because the city-state's situation is different.

"We cannot follow the Scandinavian model," Lee said.

Unlike Scandinavian countries, Singapore is resource-poor and relies heavily on investments from multinational firms to drive part of its economic engine.

Lee said "no investments will come" if Singapore adopted a high-tax regime required to finance generous welfare systems.

Apart from raising the GST rate, Lee said his government also plans to spend more of the returns made from investing Singapore's reserves, valued at more than 100 billion US dollars, on programmes to help less affluent citizens in Southeast Asia's wealthiest nation.

Explaining the timing of the planned GST hike, Lee said it was better to raise the consumption tax while the economy was in good shape so his government would have flexibility to fine-tune its social programmes.

http://www.lankabusinessonline.com/print/sing...
steve

Singapore

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#2
Aug 26, 2013
 
wow

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