Budget highlights of Singapore provides the key features of the budget for the FY 2008. Given below is an overview of the budget, which contains information about the Minister’s views and statistical data of the Singapore budget 2008.
The Finance Minister Tharman Shanmugaratnam announced the budget for the FY 2008-2009.
The budget highlights of Singapore for FY2008 can be summarized as under :
Expenses incurred on research and development was increased to approximately S$7.5 billion by the year 2010.
Budget surplus for the FY2007-2008 stood at S$6.4 billion.
The government was concerned about the rising living cost.
Policies related to taxation were adjusted for increasing competitiveness.
Appreciation of Singapore’s dollar is limited.
It is being anticipated that investment related to manufacturing activities is likely to be $16 billion in the FY 2008.
Estate duty was removed.
Deduction in taxes for R&D increased from 100% to 150%.
Corporate tax rate slated at 18%.
Introduction of tax incentives for insurance brokers as well as holding companies, which are family owned.
The Finance Minister expressed his views on the following :
Tax Incentives :
The tax incentive scheme was introduced by the Minister for the family holdings so that these firms could avail of similar exemptions like other individuals. These exemptions were pertaining to investment income from foreign sources. The Minister also introduced tax incentives for insurance brokers. A tax rate of 10% was imposed on earnings of the brokers. Earnings should be from selling various insurance schemes.
The government introduced many strategies to reduce inflation and introduced various means by which the impact of inflation could be felt least. He also announced measures to adjust to inflation around the globe.
To make the economy competitive, the Minister said that various taxation policies were being revamped so that the country could benefit not only on a short term basis but to maintain a growth, which may be sustainable.
Incentives related to R&D:
The government decreased taxes to 150% as compared to the previous tax deduction of 100%.
Expenses related to Research:
The amount spent on research work was enhanced and was slated at 3% of gross domestic product or GDP. The expenses related to research work was anticipated to become S$7.5 billion by the year 2010.
In addition to the above, the Finance Minister also dealt with other aspects of the economy. The prominent ones have been mentioned above.