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Adjournment motion on wealth taxes to reduce inequality and shore up revenue

The time has come for a "more explicit tax on wealth", said Workers' Party MP Jamus Lim. Making the call in an adjournment motion in Parliament on Monday (Nov 1), he said wealth taxes can help to reduce the overall level of inequality in society and shore up the diversity of revenue sources. He said Singapore should seek to minimise the number of regressive components in the tax regime, rather than just being content that the system happens to be progressive overall. Recent global developments, such as the agreement for a global minimum tax, also make the case that the time is ripe to re-examine Singapore's traditional tax mix. In response, Second Minister for Finance Indranee Rajah said Singapore will continue to review wealth tax. It is continually raising and enhancing the progressivity of its tax system. She said the focus is in having wealth tax policies that work in the context of each jurisdiction. She said the question has never been one of whether to tax wealth, but a practical one of how to do so effectively such that it cannot be avoided easily. She stressed that Singapore has to tax in a way that is competitive and allows people and companies to generate revenue in order to encourage them to stay here. This revenue can then be used, reallocated and redistributed. 

Adjournment motion on wealth taxes to reduce inequality and shore up revenue

01 Nov 2021 07:13pm

The time has come for a "more explicit tax on wealth", said Workers' Party MP Jamus Lim. Making the call in an adjournment motion in Parliament on Monday (Nov 1), he said wealth taxes can help to reduce the overall level of inequality in society and shore up the diversity of revenue sources. He said Singapore should seek to minimise the number of regressive components in the tax regime, rather than just being content that the system happens to be progressive overall. Recent global developments, such as the agreement for a global minimum tax, also make the case that the time is ripe to re-examine Singapore's traditional tax mix. In response, Second Minister for Finance Indranee Rajah said Singapore will continue to review wealth tax. It is continually raising and enhancing the progressivity of its tax system. She said the focus is in having wealth tax policies that work in the context of each jurisdiction. She said the question has never been one of whether to tax wealth, but a practical one of how to do so effectively such that it cannot be avoided easily. She stressed that Singapore has to tax in a way that is competitive and allows people and companies to generate revenue in order to encourage them to stay here. This revenue can then be used, reallocated and redistributed. 

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