announced on Tuesday, February 14, narrower fiscal deficits in a budget aimed at helping households manage the rising cost of living while replenishing its pandemic-depleted coffers.
“With a stronger fiscal position than last year, Deputy Prime Minister Lawrence Wong’s Valentine Budget 2023 has rightfully provided a slew of goodies for lower-income earners, working mothers, and retirees through various enhancements,” Ajay Kumar Sanganeria, a partner at KPMG Singapore, said. Wong also unveiled “more progressive” vehicle taxes affecting the top one-third of car buyers that would generate S$200 million in additional revenue per year.
The city-state also intends to implement a domestic top-up tax to bring taxes for large corporations to 15% by 2025. This is to meet pillar 2 of the Organisation for Economic Co-operation and Development’s base erosion and profit shifting 2.0 framework.