Jamus Lim on Income Tax (Amendment) Bill

Is there a perceived imbalance between what taxpayers fork out and what they believe they are getting back in benefits and entitlements? MP Jamus Lim said this in Parliament on Tuesday (Oct 3) as he raised the question of whether the Government can do more to support the least fortunate and whether the “squeezed” middle class is getting enough support. Assoc Prof Lim said while Singapore’s tax system is largely progressive, meaning those with the lowest incomes get more than they put in, this is the case in “virtually every high-income country in the world”. He said Singapore’s economic situation remains fragile and inflation - while down from last year’s peaks - is yet to be tamed, even as wages have not kept up. Saying it is “simple arithmetic” that inflation bumps up the nominal price of everything, including tax revenues, Assoc Prof Lim said rebating surpluses “should not be viewed as Government largesse” but as “a moral imperative that the Government not profit from rising prices”.