Lower taxes and schemes to help low-income employees: these were among the wishlists of Singaporean companies which responded to a recent online survey by the Singapore Business Federation, or SBF.

They say that these would help to mitigate the proposed increase in the Goods and Services Tax from the current 5 percent to 7 percent.

The Federation received responses from 86 members regarding the proposed hike in the GST.

While the government is still working out a package to help offset the increase, SBF members gave their views on what they felt should be included.

The top three suggestions include a reduction in corporate and personal income tax and new schemes to help the lower income group as well as to make up for reduced welfare benefits of those who are employed

Third on the list was for cash rebates or increased welfare subsidies for Singaporeans who are not able to benefit from tax concessions given out.

Business costs is a key concern for companies and accounting firm KPMG says lower costs could help attract investments.

Owi Kek Hean, Executive Director, Head of Tax, KPMG Singapore, says: "One has to recognise that corporate tax is a cost to the business. By lowering the business costs, it will result in higher returns to the shareholders and therefore make Singapore more attractive for investments."

Employers are also looking out for any possible changes to CPF contributions.

Some firms have expressed concern that any hike now would hurt their bottomline even though the economy has shown robust growth.

KMPG says the key factor is the sustainability of economic growth.

Owi Kek Hean says: "Looking at the economic growth that we've achieved in the last year, it will appear that this is the time to increase the CPF rate. But the great challenge is whether economic growth is sustainable. Take into consideration what has happened in the region, such as in Thailand and question of how long more the Chinese economy can sustain the growth. All these factors have to be taken into consideration whether right now is timely to increase the CPF rate."

The budget will be presented by Second Minister for Finance Tharman Shanmugaratnam on February 15th. - CNA/ch