| 2.6 A key reason businesses find Singapore
conducive is the low tax burden on the economy. The
Government’s operating revenues are only 16% of
GDP, one of the lowest tax burdens in the world. This
frees up resources for the private sector to invest
and to grow. We have also restructured our taxes, to
shift from direct to indirect taxes. The Economic Review
Committee had recommended that we increase the GST from
3% to 5%, and reduce the headline corporate and personal
income tax rates to 20%. We have already done this,
except for the personal income tax rate, which has only
come down to 22%.
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