Budget 2006

LinYu SG

SINGAPORE : Prime Minister Lee Hsien Loong has presented a Budget that will help all Singaporeans move forward, with a special eye on the lower income group.

He has promised a "Progress Package" with something for everyone, consistent with the government's practice of sharing surpluses in good times.

There will be no change to the personal and corporate taxes.

Mr Lee said with personal income tax going down to 20 percent from the Year of Assessment 2007, and a top Corporate tax of 20 percent - they are among the lowest in the world.

There is also no change to the Goods and Services Tax rate.

Also unchanged is the Additional Registration Fee for cars, and tobacco and liquor duties.

Mr Lee, who delivered the first part of his speech at about 4pm, also mapped out the bigger picture of Singapore's economic restructuring.

Efforts will be centred on making Singapore a knowledge hub by pushing R&D efforts, and making the country a centre for an exchange of ideas.

The government will inject $5 billion over five years into a newly set R&D Trust Fund.

And it will pump $63 million over three years to strengthen the manufacturing and services hub.

The government hopes to double manufacturing output and value added products by 2018.

Mr Lee spoke of developing a full-service global financial centre, with assets being managed here fast approaching $1 trillion.

He announced a slew of changes to further boost this, including a new tax incentive scheme which exempts resident funds with foreign investors from tax.

The government will grant tax exemption to SGX-listed REITs on foreign-sourced interest and trust distributions.

And it will harmonise the tax treatment of four Shariah-compliant financial products to further promote Islamic financial activities.

The Maritime and Logistics Industries will also see incentives to attract more ship-owning and ship-operating companies to dock here.

New services, like education and healthcare, and the creative media industries will also support the multi-pronged growth strategy.

A main focus is also on developing entrepreneurship - the government will help local enterprises to become global players with assistance programmes and cutting red tape.

Mr Lee says the government will continue to invest in education and aims to have a quarter of each Primary One cohort eventually enrolled in public universities by 2010. - CNA/de

So.... Heng Ah... No increase in GST and I get to spend more from my meagre pocket money.

charlize SG

I think GST is the least of your worries when you see the escalating costs of healthcare, education, housing and all these necessities. Laughing

LinYu SG

Well I can't see the bigger picture yet but I get to use more from my skool pocket money Laughing

LinYu SG

Maybe I am wrong but GST increase will eventually escalate all the cost including healthcare, education etc...AND my POCKET MONEY
Laughing

fire & ice SG

read: pocket money... she's a kiddo and doesn't really worry abt the bigger stuff like healthcare and housing... but she'll come round to tat eventually... for now, she'll enjoy herself and her little more of pocket money...

Cool

charlize SG

Trust me when I say this: Save your pocket money now.

In the future, you will need it just to survive. Laughing

LinYu SG

Why?. The same money depreciate with time.
Question

LinYu SG

Are we suppose to be happy becoz GST remains at 5%
Question

charlize SG

Some money is better than no money.

You will understand what I mean when you finish school and start working. Laughing

LinYu SG

OK......"there goes my candies. Laughing

anhydrouscoppersulphate SG

the govt so good is bcoz its the election yr Laughing

oxford mushroom SG

As already announced last year, the top peronsal tax rate would go down to 21 per cent for 2006 Year of assessment and further to 20 per cent for 2007.

Why is it that the PM's salary is more than 10 times mine but his tax rate is less than twice my tax rate?

LinYu SG

Surprise! This time give so much without taking anything back (ie no increase in alcohol and cigarette tax).
Laughing

darknessfall SG

Budget this year was aiming at lower income families, and of cse, dealing with their housing loans.

As the speculated GE approaches, the govt has allocated more $ for the budget, claiming suplurs from last year due to good economy..

Well, of cse they claim that economy was good lah..and generally, u can see the jump in budget this year compared to 2004 (not 2005 hor)

They will not raise GST during such sensitive year like this too. So, most were already expecting a stagnant GST for this year..

As the norm for every year, its good that the govt is doing its part to help the lower income pp...
However, some rich people are still staying in small flats, which the govt took as a guage to allocated some funds. Luckily, they have also a combined income per household... Wink

whatever it is, damn...the budget has so little effect on the stock market...i was still hoping it will push up the index... Evil or Very Mad

ndsef SG

First opposition say " The New Rich Poor" Then PAP try to appease the low wage earners by providing so much.

Nothing is done for people in the middle income group holding a degree or diploma and out of job. Rolling Eyes

I-like-flings(m) SG

how how how got give free money or not??? how much?? how to get it? Mr. Green

Saint Valentine SG

u still student. wait u grow older see how.

TooFree SG

Budget for Everyone

Legend:
Red = Adult citizens
Green = NSF & NSmen
Blue = Lower income workers
Dark Blue = Low income flat buyers
Violet = Students

Most will go towards a $2.6 billion Progress Package, which will include $1.4 billion in Growth Dividends for all adult citizens. The less well-off will receive more under the package.

Those living in homes with an annual value of $6,000 or less and earning $24,000 or less will get $800, while those who earn more than $24,000 getting $600.

A $6,000 value will cover all those who live in 1-, 2- and 3-room flats and most of those in 4-room flats.

Those living in homes with an annual value of more than $6,000 and up to $10,000 will get $600 if they earn $24,000 or less, while those who earn more will get $400.

Finally, those living in properties with an annual value of more than $10,000 will get $200.

With the 40th anniversary of National Service approaching, NSmen and ex-NSmen who have completed their training cycle will get an NS Bonus of $400.

Those who are still serving their NS will receive a $100 bonus.

In future, when NSmen finish their service, they will receive a completion award of $300.

Older, lower income workers who earn up to $1,500 a month, or fall within the 30th income percentile will get a workfare bonus of between $75 to $600.

This bonus will be paid out twice - in May this year and May 2007, to encourage lower wage workers to keep working, in order to qualify for the bonus.

Lower income families with household incomes of up to $3,000 will get help buying a flat - with an additional CPF housing grant of between $5,000 and $20,000.

There is also a new Work Support programme to provide for higher childcare and student care subsidies.

To continue the government's emphasis on investing in the next generation, there is a new Opportunity Fund for all schools, with neighbourhood schools getting double the grant per student than the independent and autonomous schools.

It will work out to about $118,000 for a typical neighbourhood primary school and $150,000 for a typical secondary school.

CNA

RaTtY81 SG

safe tis money up because we can expect the government to take back the next few years Laughing

LinYu SG

Question how?