A proposal to raise the tax-free threshold after 20 years amid rising wages
For the past 20 years, Singapore’s tax-free threshold of S$20,000 for personal income has remained unchanged, despite significant increases in wages driven by inflation. Tax experts suggest that it might be time for the government to reconsider this threshold to ensure that the tax burden remains fair for low-income earners.
Raising the threshold would make a higher income level tax-free, ensuring that those earning at or near this amount are not burdened by taxes, as their purchasing power has diminished with the cost of living and inflation. As wages continue to rise, particularly in the financial and commercial sectors, this adjustment could help keep the tax system equitable.
