Dear Members and Friends

The recent media coverage on the possibility of tax increases tells us that the run up to Budget 2018 is well and truly underway. The Chamber’s view is that the government has very few policy options open to it to increase taxation on the current taxpayer base.

It is not surprising that GST has come under the spotlight. Increasing indirect taxation on consumption would be preferable to increasing direct taxation on personal and corporate income. Any increase to the rate of GST will have to come with rebates for the less well-off who would be most affected by any rate increase. The alternative to a rate increase would be the lowering of the exemption threshold for GST which is higher in Singapore than in other jurisdictions. However, the downside to this would be that more smaller businesses would be liable to charge GST.

Corporate tax would appear to be off the agenda given that most jurisdictions around the world are lowering, or have lowered, their rates of corporate tax. Having said that, the government could consider reviewing all corporate tax incentives with the aim of achieving a higher overall effective rate of tax being paid by more companies.

Personal income tax would appear to be off the agenda too given that the top tier of personal income tax was raised not so long ago.

Fundamentally, Singapore needs a higher level of economic growth and more taxpayers to maintain Singapore’s competitiveness and to provide additional revenue.

Have a great week ahead.

Best regards
Victor Mills
Chief Executive

IMPORTANT NOTICE:

The Chamber, including its Certification Services Department, will be closed on 7 December 2017 (Thursday) from 11.30am to 2.30pm for an annual staff lunch. Please take note of this closure and advise all relevant colleagues to minimise any inconvenience to your company.

C-Suite Networking Night: Non-transferable Invitations,
29 November 2017
The Chamber's last networking reception for the year takes place at Skysuites @ Equinox, Level 69 of Swissotel The Stamford.  Read more

Enabling Strategy Execution, 1 December 2017
Following a fruitful first session in October, we will dive deeper into the topic of strategy execution at this panel discussion. Hear from leaders of top global companies like Oracle and Schneider Electric who implement strategy every day.  Read more

Distinguished Speaker Series: Chief Justice Sundaresh Menon,
10 January 2018
The Honourable Sundaresh Menon, Chief Justice of Singapore, will deliver a keynote address on the critical role which the rule of law plays in the growth and development of business interests in Singapore. This closed-door dialogue is exclusive to members. Chatham house rules apply. Read more