Neil Parekh Nimil Rajnikant on Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill

The Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill not only aligns Singapore's tax policies with global trends but also reinforces the country’s status as a competitive business hub, said NMP Neil Parekh Nimil Rajnikant. Speaking in Parliament on Monday (Nov 11), he said by introducing a new 15 per cent concessionary tax rate and extending the Development and Expansion Incentive, the Bill strengthens Singapore’s appeal to high-value investments in advanced manufacturing, AI and green technology. The amendments also encourage foreign investment and support economic growth through favourable tax incentives for strategic industries such as finance and logistics. He also sought clarifications on the Bill, asking if companies benefiting from existing incentives need to re-apply under the new framework and what specific benefits will small- and medium-sized enterprises will enjoy. He also wanted to know how the amendments will align with Singapore's international tax treaties to prevent double taxation and support cross-border activities, as well as the penalties for non-compliance.