Orient Magazine Issue 85 - February 2022 | Page 17

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The Minister of Finance announces Singapore ' s budget statement for 2022
The Minister for Finance Lawrence Wong delivered the Singapore Government ’ s Budget Statement for FY2022 in Parliament on the 18th February .
This year ' s budget sets out Singapore ' s priorities to : a . Invest in new capabilities ; b . Advance our green transition ; c . Renew and strengthen our social compact ; and d . Develop a fairer and more resilient revenue structure .
The Jobs and Business Support Package was extended , along with a Household Support Package to manage the immediate needs of Singapore Citizens during the pandemic .
Singapore aims to strengthen the economy ’ s digital capabilities by upgrading the broadband infrastructure and investing in future technologies . Alongside infrastructure improvements , an additional $ 200 million is set aside over the next few years to enhance schemes that build digital capabilities in businesses and workers . More support has been promised for local firms to undertake R & D activities by increasing the capacity of centres in the Polytechnics and ITE to provide research and innovation support to more SMEs . The Government will also set aside around $ 600 million to scale up adoption of the Productivity Solutions Grant and launch a new initiative , Singapore Global Enterprises , to provide customised assistance to larger local enterprises to help them grow and expand to overseas markets .
Addressing skills gaps , the eligibility criteria of the SkillsFuture Enterprise Credit scheme is being expanded to better support smaller and micro enterprises , along with additional training and company attachment programmes to upgrade skills and improve employability .
To this end , the carbon tax will be raised to $ 25 per tonne of greenhouse gas emissions in 2024 and 2025 , and $ 45 per tonne in 2026 and 2027 , with a view to reaching $ 50 to $ 80 per tonne by 2030 .
To support firms in emissions-intensive and tradeexposed sectors , the Government has put in place a transition framework to provide existing companies with allowances for a share of their emissions . On Green Finance , Singapore aims to issue up to $ 35 billion of public sector green bonds by 2030 and to build more EV charging points in residential areas .
An extension to the Progressive Wage Model was announced to support lower-wage workers , with support for older workers through an increase in employer and employee CPF contribution rates for workers aged 55 to 70 . The Government will also raise the Basic Retirement Sum by 3.5 % per year for the next five cohorts turning 55 over 2023 to 2027 .
The top marginal personal income tax will be increased , with effect from the Year of Assessment 2024 , with changes also to property taxes and luxury car taxes .
The previously announced GST increase has been delayed to 2023 and staggered over two steps . The first increase will take place on 1 January 2023 , from 7 % to 8 %, and the second increase on 1 January 2024 , from 8 % to 9 %.
More details of Budget 2022 are available at www . singaporebudget . gov . sg .
The budget also referred to adjustments in foreign worker policies to improve local-foreign complementarity . Further details are expected in the Committee of Supply announcements on this point .
Singapore ’ s ambition to achieve net zero emissions has been brought forward to at or around mid-century .
NEWS - IN SINGAPORE