The budget surplus for 2019 hit $2.1b, a carbon tax will be implemented, and a $3.1b fund for CareShield has been declared.
Find out what EY, Deloitte, KPMG, and PwC have to say about the Budget.
The subsidies will be extended to cover all Singaporeans regardless of income.
Building on prime minister Lee Hsien Loong’s announcement of the extension of the Community Health Assist Scheme (CHAS) in 2018, finance minister Heng Swee Keat announced that CHAS will be extended to cover all Singaporeans for chronic conditions, regardless of income.
Duties will be raised from $0.10 to $0.20 per litre.
Taxi drivers could reel from higher fuel costs after finance minister Heng Swee Keat announced that diesel taxes will be raised from $0.10 per litre to $0.20 per litre, according to DBS Equity Research analyst Andy Sim.
In order to offset the increase, the government will implement a permanent reduction of $850 a year on Special Tax on diesel taxis. This will bring the Special Tax down to $3,400 a year (or $1,700 per six months), from $4,250 a year currently.
The dependency ratio ceiling for foreign workers will be cut from 40% to 35%.
Keeping with Singapore’s tightening stance on immigration policies, finance minister Heng Swee Keat announced in his Budget 2019 speech the tightening of foreign worker quotas in the services sector as well as a two-step reduction of Dependency Ratio Ceiling (DRC) and S Pass sub-DRC from 40% and 15% to 35% and 10%, respectively, from 2021 onwards.
KPMG says in its Budget 2019 wishlist that it may encourage corporations to develop their risk management, vigilance and governance for cyber attacks.
Professional services firm KPMG called on the government to introduce tiered tax concessions or rebates for those companies which succeed in enhancing their cybersecurity-related capabilities to further encourage better governance and risk management.
EY says in its Budget 2019 wishlist that the revenue may be used to subsidise healthcare costs.
Accounting and professional services firm EY called on the government to introduce a sugar tax as part of an effort to push Singaporeans to healthier lifestyles and broaden the tax base.
Singapore has the second highest proportion of people with diabetes amongst developed nations in 2015, data from the International Diabetes Federation show.
The current minimum fund size requirement of $50m is too high for most.
Tax reductions and liberalising the Angel Investors Tax Deduction (AITD) are amongst the measures PwC Singapore suggested to help businesses grow in 2019, according to the firm’s Budget Proposal 2019.
Deductions could be subject to a cap which could be scaled according to age.
Enabling a tax write-off for health insurance premiums may encourage more taxpayers to take up health insurance policies for themselves and their families amidst arising chronic conditions and growing demand for health services which place complex pressures on Singapore’s healthcare system, according to PwC Singapore’s Budget Proposal 2019.
EY says that the revenue could be used to enhance Singapore's growth as a fintech hub.
Accounting and professional services firm Ernst & Young (EY) called on the government to work on enhancing its tax incentives and building corporate growth and innovation capabilities in order to shape a fiscally sustainable and secure future for Singapore.