Tax Revenue Growth and Support for Singaporeans To Combat Inflation
19 Sep 2023Parliamentary Question by Mr Ang Wei Neng:
To ask the Deputy Prime Minister and Minister for Finance in view of the record high tax revenue in the last financial year ending 31 March 2023 (a) whether the Ministry expects the tax revenue growth trend to continue for the rest of the current financial year; and (b) whether the Government will consider additional monetary payouts to Singaporeans, over and above those that have been announced, to combat inflation rather than waiting for the next budget in 2024.
Parliamentary Reply by Senior Minister of State for Finance, Mr Chee Hong Tat:
Mr Speaker, our tax revenue collections have grown broadly in line with GDP. The higher tax revenue collection in financial year 2022, compared to the previous year, was due to our economic recovery after the COVID-19 pandemic. While some of this growth momentum has benefitted tax revenue collections in financial year 2023, it is unclear whether the trend can continue due to the uncertain global economic outlook.
The Government understands that cost of living remains a key concern. That is why we had enhanced the Assurance Package to $9.6 billion in Budget 2023 to provide Singaporeans with additional financial support. More support is provided to lower and middle-income families, as well as seniors staying in both public and private estates.
As PM Lee mentioned at the 2023 National Day Rally, MOF is currently studying further enhancements to the Assurance Package. We will announce more details shortly, after the review is completed.