Younger S'poreans should not be burdened with taxes: K Shanmugam

Looking out for the young and old
by Dylan Loh, TODAY, 12 Mar 2012

Law and Foreign Affairs Minister K Shanmugam has said that the Government does not want younger Singaporeans to be saddled with tax burdens, even as it ensures that the elderly are taken care of and no one is left behind.

He said it is also important to balance the country's revenue and expenditure.

Mr Shanmugam was responding yesterday to the recently-concluded Budget Debate in Parliament, at the sidelines of a community event at the Nee Soon Group Representation Constituency.

Mr Shanmugam said the Government wants a society where people look after one another, especially those who cannot help themselves.

"There's a lot of debate on whether you can survive in Singapore on S$1,000 or S$850. We don't want anyone to earn that amount, which is why we give opportunities for people to upgrade themselves. And education is made, literally free, for those who can't afford to pay for it," he said.

This year's doubling of healthcare spending and help for the low income as well as the disabled, all point towards an inclusive approach.

Mr Shanmugam said the Government wants to look out for the young and old alike.

"Because we have an ageing population, we must also make sure that our younger people, those in their 20s, 30s, 40s, are not saddled with a heavy tax burden," he said.

The Government also ensures that tax rates in Singapore remain competitive. Rather than increasing taxes, he noted that the Government would rather people keep their money and support those in need.

He said: "We keep our tax rates competitive, 20 per cent at the top rate. Hong Kong is 15 per cent. If you go to UK, US, you know what their tax rates are? You're talking about 40 per cent, 50 per cent, people are talking about even higher. We don't want those kind of rates.

"We rather people keep their money and spend it as they like, buy insurance for their health and at the same time the Government supports those who despite all the help, still need further help."

Mr Shanmugam said a significant part of taxes are paid by foreigners who are easily mobile, and by those better-off. The accounts, or how the tax revenues are spent, also do not go unchecked.

"When I talk to my grassroots leaders, I just did a walkabout in my constituency, we also have to send another message, which is that, only about 50 per cent of Singaporeans pay taxes. And you look at all the other fees and everything else that's collected, in terms of what the Government gets, and what it spends, it is all in the book.

"Today if you look at it in those terms, in terms of the revenue and expenditure, it is something the Government has to be careful about," he added.