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Read moreSingapore raises taxes on alcohol, tobacco and gambling to fund healthcare
02/25/2014
In Britain we know that the numbers in our aging population are rising and that the cost of caring for the elderly is likely to soar in future years. Singapore has recently come up with an innovative solution to finding the money to pay for health care for their increasingly elderly population. They are to raise the taxes on alcohol, tobacco and gambling, in order to pledge billions of dollars which will ultimately benefit those in need of health care in their later years, who are known as the “pioneer generation”.
Sharp rises include a 25% rise in tax on alcohol, and a 10% rise in tobacco duty, while gambling duties on Singapore Pools, which is similar to the National Lottery are set to rise to 30% of all gross bets. The plans were unveiled in a speech made by the Finance Minister Tharman Shanmugaratnam, last week, as part of a $9 billion Singapore dollar package which will benefit the aging population, especially with healthcare costs. The money will be used to provide outpatient care and medical insurance among other services.
Singapore has one of the fastest growing aging populations in the world, with people living longer and birth rates falling. It’s estimated that a fifth of all residents will be older than 65 by 2030.
Tharman Shanmugaratnam made it clear that these benefits would be for everyone and not dependent on income. Raising taxes on what are deemed to be luxury or “sinful” outgoings is thought to be a more popular option than raising personal or business taxes, and it is thought that the plans will be welcomed by the people of Singapore. Older residents make up an important part of the voting public, with general elections due in mid 2016, and the People’s Action Party’s plans may help to placate frustrated voters who struggle with the cost of living.
The Finance Minister also announced other plans to help the growth and productivity of small and medium sized businesses and to reduce the need to rely on foreign labour. The trend of increased numbers of foreign workers in Singapore has been a political issue with many residents struggling to find work and living in overcrowded conditions.
