Tharman declares: More ‘support’ has been given to lower income group by govt
Posted by temasektimes on July 27, 2012
The Singapore government has been channeling more ‘support’ to the lower income group for the last few days to ensure opportunities for social mobility, declared Deputy Prime Minister Tharman Shanmugaratnam.
Speaking on the topic of “Governing for an Inclusive Society” at a forum organised by the Institute of Policy Studies, Mr Tharman stressed that Singapore must “avoid the stagnation of median wages, improve opportunities for social mobility and place more intervention strategies upstream.”
He added that Singapore has developed a ‘progressive’ system where more support is now channelled to the lower end of society despite the lowering of income tax rates and higher tax on goods and services.
“If you look at what has happened in the past decade, despite the lower income tax rates and our higher GST rate, our fiscal system has become more progressive not less,” Mr Tharman said.
He also claimed that the lower income group now receive more ‘transfers’ from the government compared to the taxes they pay, compared to 10 years ago.
“More transfers to the lower income group now, compared to 10 years ago, and we have been able to achieve it without a significant increase. In fact with a minimal increase in net taxes paid by the middle class, and that I feel needs to remain a distinctive feature of our fiscal system, try to avoid to increase the burden of the middle class.”