Focus sought for green transition, food security, workers’ needs in 2024 budget

A one-stop platform has been laid out to help accelerate companies’ sustainability goals.

PwC Singapore has proposed Singapore’s 2024 budget to allocate higher funding on food security, prioritise employees’ needs, and give support to businesses transitioning towards sustainability.

In its recommendations for the state budget next year, PwC proposed a Sustainability Support Scheme (SSS) providing a one-stop platform for grants and tax incentives that businesses can avail of to help them operationalise their sustainability strategies and goals.

“The transition to operating sustainably and maintaining that momentum will no doubt be costly. This (SSS) will provide the appropriate level of support for different needs across the ecosystem to drive the desired actions and outcomes,” said Irene Tai, tax leader for energy, utilities and resources at the accounting firm.

Higher budget allocation for healthcare, education and sustainability is also needed as the city-state continues to combat high inflation and survive the ongoing economic slowdown, according to Chris Woo, Asia Pacific and Singapore tax leader at the firm.

PwC said the state could grant a concession for farming income that will give eligible investors a tax deduction for losses incurred by a company engaged in producing food locally.

It also proposed tax deductions on the cost of buildings mainly used for farming purposes, and on upfront land premiums for buildings on land approved for farming. 

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“Advocating for strategic tax concessions and deductions will not only nurture local food production but also beckon investors to contribute to a sustainable agricultural landscape,” said Ching Ne Tan, corporate tax leader at the company.

The country’s workforce is also in need of more support from the government.

PwC suggested these can be in the form of one-off tax rebate, increased earned income relief, mandatory parent care leave credits, flexible work setups for working mothers and additional mental health benefits from employers, among other things.