PwC Singapore 2022 budget proposals to push for clean environment
The growth of the country’s economy and society were also targeted.
Recommendations regarding economic growth, society development, and a green environment for the Singapore 2022 budget were announced by PwC Singapore.
“The OECD proposal for a global minimum tax is expected to reduce the effectiveness of tax incentives as a tool to encourage larger multinational enterprises (MNEs) to invest in Singapore. Hence, it is important for Singapore to strengthen its competitiveness on a non-tax front, particularly on alleviating the cost of doing business, to remain an attractive location for foreign direct investments. Crucial to achieving this is to develop Singapore as a hub for sustainability and carbon services, as well as emerging areas like the New Health Economy,” said Chris Woo, Tax Leader, PwC Singapore.
In terms of Singapore’s sustainability, the proposals target sources of pollution beyond greenhouse gas metrics. Development of local environmental, social, and governance (ESG) talents, making the purchase of carbon credits more accessible, and agriculture and food security are sectors that PwC believes will help develop the country’s growth in sustainability.
In particular, with the increased feasibility of carbon credits, PwC pushes for double tax deductions for businesses to offset purchases supporting ESG transformation and tax deductions for individuals. GST for carbon credits and the initiation of programs targeting companies and the recycling of used packaging were also touched upon by the group.
PwC’s proposals also include suggestions for incentives to further ESG and sustainability efforts, such as schemes for exchanges, Preparing for Carbon Border Adjustment Mechanisms and improving the not-for-profit organisation tax exemption scheme.
Other recommendations by the firm include investing in HealthTech and the New Health Economy and the mitigation of cybersecurity and data security.