Which Taxes Could You Be Paying More For In 2018?
You may be paying more in taxes soon, as Prime Minister Lee Hsien Loong announced on November 19 that an increase in taxes is inevitable. Singaporeans can expect taxes to go up in the next few years, with tax hikes introduced as soon as Budget 2018.
Among the taxes that may be increased are the Goods and Services Tax (GST), sin tax, environmental tax, personal income tax, property tax and luxury goods tax. An e-commerce tax for goods and services purchased online (which are currently exempt from GST, if totalling less than S$400) may also be introduced.
However, many Singaporeans can breathe a collective sigh of relief, as Singapore’s focus on a progressive tax system means (at least in principle) that the brunt of any possible tax hikes won’t be shouldered by those in the low- or middle-income band.
Based on historical trends, the GST may not experience a sharp increase, so Singaporeans won’t have to significantly cut back on spending. Any GST hike may also be accompanied by GST vouchers and rebates.
The personal income tax for low- and middle-income individuals is also not expected to increase. However, high-income individuals may be affected by increased tax rates and a possible introduction of new tax brackets.