Budget 2024 debate: Don Wee on tax schemes, supporting SMEs and uplifting lower-wage workers
The introduction of the Refundable Investment Credit (RIC) scheme will help existing companies and potential investors impacted by Pillar Two of the Base Erosion and Profit Shifting (BEPS) 2.0 framework. As a tax credit with a refundable cash feature, the RIC is an attractive and flexible scheme supporting a range of high-value economic activities including manufacturing, green transition activities as well as in R&D. However, would the Government make the scheme available to businesses which are not as expenditure-heavy? MP Don Wee raised this question in Parliament on Tuesday (Feb 27). He also wanted to know if the Government would consider offering tax credits on output and volume-based features. He also pointed out that more targeted funding support can be provided to small- and medium-sized enterprises to invest in carbon pricing and modelling solutions, as well as projects such as decarbonisation. On uplifting lower-wage workers, he asked if the Government would consider indexing the Workfare Income Supplement (WIS) and social support schemes to inflation or the Consumer Price Index annually and proposed for the WIS to take into account household income for higher payouts in lower-income households with more dependents.
The introduction of the Refundable Investment Credit (RIC) scheme will help existing companies and potential investors impacted by Pillar Two of the Base Erosion and Profit Shifting (BEPS) 2.0 framework. As a tax credit with a refundable cash feature, the RIC is an attractive and flexible scheme supporting a range of high-value economic activities including manufacturing, green transition activities as well as in R&D. However, would the Government make the scheme available to businesses which are not as expenditure-heavy? MP Don Wee raised this question in Parliament on Tuesday (Feb 27). He also wanted to know if the Government would consider offering tax credits on output and volume-based features. He also pointed out that more targeted funding support can be provided to small- and medium-sized enterprises to invest in carbon pricing and modelling solutions, as well as projects such as decarbonisation. On uplifting lower-wage workers, he asked if the Government would consider indexing the Workfare Income Supplement (WIS) and social support schemes to inflation or the Consumer Price Index annually and proposed for the WIS to take into account household income for higher payouts in lower-income households with more dependents.
