SINGAPORE: Law and Foreign Affairs Minister K
Shanmugam said that the government does not want younger
Singaporeans to be saddled with tax burdens, even as the elderly
are looked after.
He said it's important to balance the country's
revenue and expenditure.
Mr Shanmugam was responding to the recently
concluded Budget Debate in Parliament, at the sidelines of a
community event at the Nee Soon Group Representation
Constituency.
Mr Shanmugam said the government wants a society which looks after
one another, especially those who can't help themselves.
"There's a lot of debate on whether you can survive in Singapore on
S$1,000 or S$850. We don't want anyone to earn that amount, which
is why we give opportunities for people to upgrade themselves. And
education is made, literally free, for those who can't afford to
pay for it," he said.
This year's doubling of health care spending and help for the low
income as well as disabled, all point towards an inclusive
approach.
But at the same time, the accounts do not go unchecked.
Mr Shanmugam said: "When I talk to my grassroots leaders, I just
did a walkabout in my constituency, we also have to send another
message, which is that, only about 50 per cent of Singaporeans pay
taxes.
"And you look at all the other fees and everything else that's
collected, in terms of what the government gets, and what it
spends, it's all in the book.
"And today if you look at it in those terms, in terms of the
revenue and expenditure, it is something the government has to be
careful about."
Mr Shanmugam said currently a significant part of taxes are paid by
foreigners who are easily mobile, and by the better-off.
But the government also ensures that tax rates in Singapore remain
competitive.
And rather than increasing taxes, he noted that the government
would rather people keep their money and support those in need, for
a truly inclusive society.
He said: "We keep our tax rates competitive, 20 per cent at the top
rate. Hong Kong is 15 per cent. If you go to UK, US, you know what
their tax rates are?
"You're talking about 40 per cent, 50 per cent, people are talking
about even higher. We don't want those kind of rates.
"We rather people keep their money and spend it as they like, buy
insurance for their health and at the same time the government
supports those who despite all the help, still need further help.
So inclusive society."
- CNA/ck
