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Monday, February 19, 2018

Daily Lessons from Life 19 February 2018 - Sgp Budget

"From GST to hongbao giveaway: Budget 2018’s impact on economy, environment and society

*Budget 2018*

1. *Angbao*
All Singaporean will receive $100 to $300 depending on their income.

2. *Tobacco excise duty*
Increase by 10% from today 

3. *GST on overseas import services*
We might have to pay GST for Netflicks, Spotify, app store and even shopping online.

4. *Buyer stamp duty*
Increase to 4% for private ppty worth more than $1mil.

5. *GST hikes*
Increase from 7% to 9% starting from 2021 to 2025.

6. *Tax reduction for donations*
250% tax deduction for donations to charities that are Institutions of a Public Character will be extended for three more years, until 2021.

7. *Foreign domestic helper levy*
Increase from $265 to $300 for first worker. $450 for second. Take effect April 2019.

8. *Extension of S&CC rebates*
Extend for one more year

9. *Enhance housing grant*
Promixity increase from 2km to 4km for living near parents. Grant increase from $20k to $30k.

10. *New Enterprise Development Grant* 
Combine IE Singapore and SPRING's existing grants, with up to 70 per cent co-funding

11. *Corporate income tax*
Rebate raise to 40%, cap at $15k for Yr2018.
20%, cap at $10k for Yr 2019.

Meanwhile, to help the marine shipyard and process sectors cope with ongoing weakness, the foreign worker levy increases will be deferred for another year."

1st of all, the surplus fr last year was 5x expected! It shows the government didn't really know more than u n I!! lol!!

Nevertheless, better split the 7.7B excess surplus to long term Infrastructure Fund 5B, Premium for Medishieldlife 2B n 0.7B Hongbao!!

GST increase to wait till after GE2020 then starts. i.e. fr 2021-2025 fr 7% to 9%. 

NIRC (Net investment returns contribution) fr MAS/GIC/Temasek making more n more of budget means more room for other type of revenue raising longer term as returns can be volatile!!

Good to keep the cap on government expenditures though they will need to be more specific on if existing spending is optimal to start with.

Healthcare spending on capital items must be accounted for over a period of time n the "normal recurring" expenditures can be better control n even reduced if optimization of processes can be improved. Let's be clear to split the 2 types of expenditures. 

Spending in security must be properly laid out too. More digitisation n robotisation can rduce costs too.

Most outstanding for me is really the Long Term looking n planning for exoenditures fr 2021 to 2030 - a 10-yr horizon! Hopefully the citizens will REMEMBER this point!!

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