Budget 2023 debate: Louis Chua on tax system and social compact
There is “significant scope” to do even more to keep Singapore’s system of taxes and benefits fair and progressive, said MP Louis Chua in Parliament on Wednesday (Feb 22). He suggested reintroducing the tax on net annual value of properties and setting the annual value threshold “at a high bar”. He said this would make it an effective wealth tax targeting those who can afford the likes of Good Class Bungalows and especially for residential properties that are not let out. Mr Chua also asked if the Ministry of Finance had a range of projections for the impact on revenue and fiscal projections of implementing a 15 per cent minimum effective tax rate for large multinational enterprises (MNEs) from 2025. He said he hoped the additional tax revenues will not simply be “in substance returned to MNEs through other forms”. Mr Chua also spoke about “truly strengthening” Singapore’s social compact. He said most mothers will be unaffected or worse-off with the change in Working Mother’s Child Relief from a percentage of earned income to a fixed sum, and asked if the Government can raise the CPF annual salary ceiling from the current S$102,000, in tandem with the raising of the CPF salary ceiling from S$6,000 a month to S$8,000 a month.
There is “significant scope” to do even more to keep Singapore’s system of taxes and benefits fair and progressive, said MP Louis Chua in Parliament on Wednesday (Feb 22). He suggested reintroducing the tax on net annual value of properties and setting the annual value threshold “at a high bar”. He said this would make it an effective wealth tax targeting those who can afford the likes of Good Class Bungalows and especially for residential properties that are not let out. Mr Chua also asked if the Ministry of Finance had a range of projections for the impact on revenue and fiscal projections of implementing a 15 per cent minimum effective tax rate for large multinational enterprises (MNEs) from 2025. He said he hoped the additional tax revenues will not simply be “in substance returned to MNEs through other forms”. Mr Chua also spoke about “truly strengthening” Singapore’s social compact. He said most mothers will be unaffected or worse-off with the change in Working Mother’s Child Relief from a percentage of earned income to a fixed sum, and asked if the Government can raise the CPF annual salary ceiling from the current S$102,000, in tandem with the raising of the CPF salary ceiling from S$6,000 a month to S$8,000 a month.
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