"I don't think (the higher taxes) will impact the property market much, but if it does, it's not such a bad thing - our property taxes are not very high.
"As a permanent state of affairs, we have to find some ways of getting tax revenue for the long term. It's better to tax wealth than to tax income," he said during a Budget forum broadcast live over Channel NewsAsia.
He added that the majority of Singaporeans living in their own homes will end up paying lower property tax; only the "high end" - the top one per cent of homeowners - will see their property tax rate go up.
In his Budget speech yesterday, Mr Tharman proposed significant hikes to the tax rates for high-end investment properties, with investment homes - those not occupied by their owners - bearing the brunt of the increases.
Responding to a question during the forum on how the Budget surplus would be deployed, he said the government had tried to put money back into the economy and society in a "judicious" way.
Singapore's overall Budget surplus for FY2013 is estimated at $2.4 billion, or 0.7 per cent of its gross domestic product (GDP), compared to $3.9 billion in FY2012.
"Some of the measures we're taking with households are not just immediate transfers because of the cost of living. There are longer-term changes to give them some sense of security over the long term, particularly for our older folk," he said.
The minister also stressed the importance of restructuring the Singapore economy to raise productivity and achieve sustainable growth.
The construction industry was singled out as the sector most in need of a productivity boost, as it lags behind regional competitors in jurisdictions such as Hong Kong and Korea.
"There's a lot to be achieved. You can't get there all at once. You can't suddenly contract or even freeze the size of our foreign workforce," he said.
"We can go forward with a series of major steps - not incremental steps, but not trying to make a leap all at once."
He called the $3.9 billion Wage Credit Scheme (WCS) announced in the Budget a "major step" that the government is taking with businesses to co-fund 40 per cent of Singaporeans' wage increases over the next three years.
"With the WCS and the productivity support we're providing, it allows you to raise productivity, share gains with the workers, and retain your workers better," he said.
In outlining the Budget for a fair and inclusive society, the government also has plans to double its spending on the pre-school sector over the next five years to some $3 billion, among various enhancements to schemes for lower-income and older workers.
"One of the main reasons we're upping our game in pre-schools is because we want to intervene earlier to help kids who do not start off with an advantage," he said.
Source: Business Times –26 February 2013
No comments:
Post a Comment
No Spam, No Abusive Languages. Thank you for your cooperation!