Singapore’s wealthiest may be taxed more: DPM Wong

The government is gearing up to help lower-income households deal with inflation, reports Bloomberg.

Deputy Prime Minister Lawrence Wong signaled that Singapore’s wealthy may be taxed more in the future as the government ramps un fight against inflation 

“Everybody pays some form of taxes but certainly the ones with greater means — the rich and the higher-income — will have to pay more,” Wong said in an interview with Bloomberg.

Singapore had already raised the taxes of the wealthiest 1%, announced at the budget speech in February. 

Whilst the country’s income inequality based on the Gini coefficient has been narrowing, the government probably needs to “lean some more in the direction of more inclusive growth,” Wong noted, referring to an index that measures an inequality of values, in this case, income levels in Singapore.

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Apart from higher taxes for the rich, Wong noted that it is also important to ensure that spending is targeted at lower-income groups and those with greater needs.  

These comments are in line with Prime Minister Lee Hsien Loong's statement last week that the government is prepared to do more to help lower-income households deal with price increases hovering at a 14-year high. 

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Inflation is expected to peak by the end of the year before easing, Wong said in the interview, adding that the government will provide more assistance should prices rise further. 

Singapore’s prices rose 6.7% in June, its quickest pace since mid-2008. Wong further expects inflation to settle at a higher rate “especially considering the geopolitical environment, supply issues, and spending on the green economy transition,” he added.

Read more from Bloomberg.