Factors Meriting Additional or Incentivised Income Tax Deductions, Exemptions or Reliefs Beyond Income Tax Act Provisions

3 Ms Usha Chandradas asked the Prime Minister and Minister for Finance what key factors does the Ministry consider when assessing whether a particular industry merits additional or incentivised income tax deductions, exemptions or reliefs, beyond the standard treatment provided for in the Income Tax Act.

Mr Chee Hong Tat: Our income tax concessions for an industry are mainly intended to support economic growth and enterprise in Singapore. In assessing any proposed tax concession, the Government conducts a cost-benefit analysis, assesses its effectiveness given the nature of the industry and considers whether the proposed concession is consistent with our tax principles and policy. The Government also considers whether the proposed concession is necessary, given the other existing non-tax measures that may already be in place to support the industry.