Highlights of Singapore’s Budget 2022 Include:
Table of Contents
GST Hike to Be Implemented in Two Phases
- From January 1, 2023, the Goods and Services Tax (GST) will be increased by one percentage point to 8%.
- From January 1, 2024, the GST will be further increased by one percentage point to 9%.
Higher Property Taxes
- Property tax rates for residential properties will be raised in two steps, starting from the tax payable in 2023, with higher-end residential properties seeing a larger increase.
- Property tax rates for non-owner-occupied residential properties will increase from the current 10%-20% to 12%-36%.
- Property tax rates for owner-occupied residential properties will increase from the current 4%-16% to 6%-32% (for the portion of the Annual Value above S$30,000).
Higher Salary Thresholds for EP and S Pass Applications
- From September this year, the minimum monthly salary for new Employment Pass (EP) applicants will be raised from S$4,500 to S$5,000.
- The income threshold for new S Pass applicants will also be raised from S$2,500 to S$3,000.
Higher Personal Income Tax for High Earners
- Starting from the Year of Assessment 2024, the marginal tax rate for chargeable income from S$320,000 to S$500,000 will remain at the current 22%.
- For chargeable income from S$500,000 to S$1 million, the marginal tax rate will be increased to 23%.
- For chargeable income above S$1 million, the marginal tax rate will be increased to 24%.
Household Support Package
- S$100 in Community Development Council (CDC) Vouchers.
- S$200 top-up to the Child Development Account (CDA), Edusave Account, or Post-Secondary Education Account (PSEA).
- +100% GST Voucher – U-Save rebates.
More Support for Low-Income Households
- Every low-income family participating in the ComLink (Community Link) program will receive customized assistance to address their issues and challenges, enabling families in need to improve their lives.
Assurance Package
- The previously announced S$6 billion Assurance Package will be topped up by another S$640 million and will be supplemented by the enhanced permanent GST Voucher scheme.
- S$700 – S$1,600 in cash payouts.
- S$600 – S$900 in GST Voucher – Seniors’ Bonus.
- S$330 – S$570 in additional GST Voucher – U-Save rebates.
- S$400 in CDC Vouchers.
CPF Basic Retirement Sum to Increase by 3.5% Annually
- From 2023 to 2027, the Central Provident Fund (CPF) Basic Retirement Sum will be raised by 3.5% annually for CPF members turning 55 in the next five years.
Drawing on Past Reserves for COVID-19 Public Health Expenditure
- To ensure that Singapore can respond flexibly and confidently to the evolving COVID-19 situation, the government will draw on national savings this year, using S$6 billion from past reserves to cover public health expenditure related to the coronavirus.
Higher Additional Registration Fee for Luxury Cars
- Following the adjustment of the Additional Registration Fee (ARF) for luxury cars, the ARF payable for the portion of the Open Market Value (OMV) exceeding S$80,000 will be increased from 180% to 220% of the OMV.
Building a Green Home
- The carbon tax will be increased starting the year after next, expected to reach S$80 per tonne by 2030 at the latest. This move will help the nation achieve its new, more ambitious climate goals.
- The target is to reduce carbon emissions to net-zero by around 2050.
Issuing Public Sector Green Bonds
- Approximately S$35 billion in green bonds will be issued by 2030 to finance public sector green infrastructure projects as the nation strives to tap into green finance opportunities.
- Green bonds are financial instruments used to fund projects with environmental benefits, providing investors with regular or fixed income payments.
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
