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Singapore 2011 Budget Has Something for Everyone
The recently released Singapore budget detailed the financial policy of the Government from 1 April 2011 to 31 March 2012. Taxand Singapore analyses at the overall health of the economy and the tax proposals outlined in the Singapore Budget Statement 2011.
Singapore's GDP grew by a record 14.5% in 2010 and unemployment dropped to levels seen in early 2008, before the crisis. 2010 also saw record investments that will create 21,300 new skilled jobs once these projects are fully realised. CPI inflation was 4.6% year-on-year in December 2010. The overall budget for FY2010 has a deficit of $0.3 billion or 0.1% of GDP (as compared to the original estimate of an Overall Budget Deficit of $3.0 billion or about 1.0% of GDP for FY 2010).
In 2011, inflation is expected to be around 3% to 4% this year. However, a large part of the CPI inflation increase can be explained by higher COE premiums and the higher imputed values of owner occupied homes, compared to a year ago. A basic deficit of $.2 billion for FY2011 (or about 0.7% of GDP) is expected. The Overall Budget Balance for FY2011 is projected to be a slight surplus of $0.1 billion.
The following tax proposals are looked at in detail:
- Personal Tax Changes
- Benefits for Individuals
- Corporate Tax Changes
- General Tax Exemption Schemes and Incentives
- Sector Specific Tax Schemes
- Goods and Services Tax
- Stamp Duty
The Budget had a little something for everyone and was generally met with good response. The giving out of growth dividends and sharing of 2010's good earnings with Singaporeans through the tax rebates and reduction of personal tax rates in light of the booming economy was certainly welcomed. Some commentators had likened the Budget to having a "Robin Hood" feel, as greater benefit was given to the less well off.
Your Taxand contact for further queries is:
Leon Kwong Wing
T. +65 6238 3018
Download the full memorandum from Taxand Singapore here: