Experts: Income tax increase will not compromise competitiveness

Regarding the increase in personal income tax for top earners in Singapore, Associate Dean (Faculty Research) of the SMU School of Economics, Professor Hoon Hian Teck said that this change not only provides the Government with an additional source of revenue for future national investments and to strengthen social safety nets, it also serves as a way to redistribute income. He added that the Government’s initial lowering of income tax allowed Singapore to maintain its competitiveness as well as attract foreign investors and talent, but the income tax increase this time will better equip Singapore with the resources needed to face new challenges in the future.