SINGAPORE: In social media posts after announcing this year’s National Budget in Parliament on Friday (Feb 16), Deputy Prime Minister and Finance Minister Lawrence Wong said that part of the Budget is aimed at tackling “immediate challenges for households and businesses.”
For businesses in particular, this meant announcing a 50 per cent Corporate Income Tax Rebate with a maximum of S$40,000 this year as part of the S$1.3 billion Enterprise Support Package. This includes a minimum benefit of S$2000 in cash for companies with at least one local employee last year.
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Meanwhile, individuals will receive a 50 per cent personal income tax rebate for this year, at a maximum of $200.
Mr Wong also said that the Government is investing S$3 billion in Research, Innovation, and Enterprise in 2025. It will also introduce the Refundable Investment Credit scheme and provide top-ups of S$2 billion each to the National Productivity Fund and the Financial Sector Development Fund.
He added announcements concerning investments in technology, specifically Artificial Intelligence (AI), as well as support for sustainability efforts.
Moreover, the Government is also aiming to uplift lower-wage workers with an increase to the Workfare Income Supplement scheme payouts for a maximum of S$4,900 per year beginning from January of next year.
For this scene, the qualifying income cap will also be raised to S$3,000 by January 2025. As for the Local Qualifying Salary, this will be raised to S$1,600 by this July.
DPM Wong also announced that past and present National Servicemen will be getting S$200 in LifeSG Credits in recognition of their contribution to the country’s defence.
Mr Wong told the House, “The backbone of our defence and security remains national service.”
These will be given to around 1.2 million NSmen and NSFs beginning this November and will be valid for one year at over 100,000 merchants that accept payment via PayNow or Nets QR.
Generous Singaporeans supporting emergency humanitarian assistance overseas will be given 100 per cent tax deductions.
Retired citizens living in higher-end residential homes but facing financial issues may avail of a 24-month installment plan without any interest when paying their Property Tax bills, added Mr Wong.
He also said that Singapore expects a Budget surplus of S$0.8 billion this year, or 0.1 per cent of the country’s GDP.
Calling this an “essentially a balanced fiscal position,” he added, “Assuming we stay within this range of spending increase, we should have sufficient revenues to maintain a balanced budget over the coming years.” /TISG