A brief summary of the budget delivered by Minister for Finance, Mr. Heng Swee Kiat.
1) Skills Upgrading
Global Innovation Alliance and Skills Future Leadership development Initiatives announced. The Singapore government will continue its efforts to encourage continual skills upgrading of the workforce.
2) Help for workers
Jobseekers will be given more support under the Career Support Program, Professional Conversion Programme, Work Trial Programme and a new Attach and Train initiative.
3) Help for business to expand overseas
The government will commit SGD$600 million for an International Partnership Fund. This allows firms to co-invest with the government to help them expand internationally.
4) A Cleaner and Healthier Singapore
A carbon emission tax will be levied on producers of greenhouse gases from 2019. This tax will be between $10 to $20 per ton of greenhouse gas emitted.
Diesel will be taxed based on usage. The tax to be levied is $0.10 per litre.
The CEVs scheme for cars will be revised to include other form of pollutants other than carbon emission.
5) Water tarrifs to increase
Water prices will increase by 30%. This will be done in two phases. In July 2017 and in July 2018. The government will help low income households with the increase in cost.
6) Changes to HDB Housing Grants
The current CPF Housing Grant is $30,000 for first-timers who purchase resale flats. The government will increase the grant to $50,000 for first-timers who purchase resale flats that are 4-room flats or smaller and $40,000 for those who purchase 5-room flats or larger.
7) Taxes
The corporate income tax rebate cap will be raised from $20,000 to $25,000 at 50 percent of tax payable. It will also be extended by a year to Year of Assessment 2018. The cap for 2018 is $10,000, 20 per cent of tax payable.
There will be a personal income tax rebate of 20 per cent of tax payable, capped at $500.
8) Payouts
There will be a permanent increase in GST Voucher U-Save payouts. Depending on HDB flat types, the rebates will be increased from between SGD$180 and SGD$260 to SGD$220 and SGD$380 respectively.
9) Building a more inclusive society
More will be done to help those with special needs and disabilities as well as care givers.
10) A more prudent government
There will be a 2% downward adjustment to be applied to the budget caps of all ministries. This cap will take effect from FY2017. Four ministries, Home Affairs, Defence, Health and Transport will see the reduction over the next two years.
11) Higher motorcyle tax for larger motorcycles
For larger motorcycles, the ARF rate will be increased.
After the Finance Minister presents the budget to Parliament, Members of Parliament will put up queries on the proposed budget as well as the expenditure from the previous financial year. Once this debate process is completed, Parliament will pass the bill in support of the budget. This bill is the Supply Bill. The President’s assent is required to enact the Supply Bill. He may withhold his assent if the proposed budget is likely to draw on Singapore’s past reserves. According to the finance minister, we are expecting a surplus from the proposed budget.
Yours Sincerely,
Daryl Lum
www.daryllum.com
