Singapore gives households and companies tax relief

Singapore (AFP): Singapore unveiled on Friday a relief package for individuals, including rebates for utility bills to help ease the high cost of living in the city-state.

The announcement was made during the 2024 national budget statement coming ahead of general elections due next year.

The polls are set to mark a major political transition, with a younger crop of leaders set to lead the Southeast Asian economic powerhouse.

Deputy Prime Minister and Finance Minister Lawrence Wong presented the wide-ranging budget in parliament that earmarked Sg$3.2 billion ($2.4 billion) to support households and companies grappling with inflation.

A personal income tax rebate of 50 percent capped at Sg$200 for the last tax year, will be granted, while families will also receive cash and rebates for their utility bills.

“These are concrete ways to help Singaporeans tackle cost of living pressures,” said Wong, who is expected to succeed Prime Minister Lee Hsien Loong before general elections due by November 2025.

“Let me assure everyone we will always have your backs,” he said.

Companies will also enjoy a 50 percent corporate income tax rebate, capped at Sg$40,000, as part of a package to help businesses.

“Many companies have seen increases in their wage bills, rental and utilities, amongst others,” said Wong, 53.

Prime Minister Lee has said he intends to hand over the reins to Wong later this year.

When Wong takes over, it would be only the second time since Singapore’s independence in 1965 that the prime minister is not a member of the Lee family.

Lee Hsien Loong’s father, Lee Kuan Yew, was the country’s first prime minister.

“It’s a pro-social budget, with about three-quarters of the speech devoted to social measures,” said Eugene Tan, an associate law professor at the Singapore Management University.

“It’s a generous budget yet balanced,” he told AFP.