| 2.52 Finally, we must continue
to keep our taxes low, to keep our business environment
competitive, and spur enterprise and entrepreneurship.
Singapore cannot have a high tax, high spending
model. The Scandinavian countries do this, but
in quite different circumstances. We are much
more reliant than they are on foreign investments
and talent. We must compete for these against
many other countries, in the region and beyond.
Our own people and businesses are also more mobile,
and can easily move out of Singapore in search
of lower taxes elsewhere. Our policy choices are
therefore much more tightly constrained.
2.53 Our strategy therefore is to pursue low
taxes and tight expenditures. A light, predictable,
and efficient tax regime will promote growth,
which in turn will boost revenues and ensure sufficient
resources for our needs. After the major tax restructuring
in the last five years, our main taxes are at
about the right levels, although this does not
mean that we will never need to adjust our taxes
or increase spending. I will touch on each of
our main taxes in turn.
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