The state will stop collecting up to S / 20.354 million in taxes for tax benefits

A week ago, the head of the Ministry of Economy and Finance, Kurt Burneo, was against the application of new benefits or tax breaks.

“The logic of the government, in what suits my sector, is that we should not continue these schemes. tax expensesspecial regimes or special changes in the tax part for certain economic agents,” he said during the presentation of the Multi-Year Macroeconomic Program (MMM) for 2023-2026.

By 2023, it is noted that the recruitment tax incentivessuch as tax credits and deductions that still exist, will mean that the state will stop collecting about SGD 20,354 million in 2023.

“By type of tax, most of the tax expenditures in 2023 are concentrated mainly in the IOP (70.9%), in connection with the exemption from this tax on agricultural products and in the Amazon; they are followed by tax expenses on income tax (19.1%) due to the non-infection of workers with CTS, including,” the MEF points out in MMM based on Sunat data.

Only exemption from VAT Agricultural products represent a potential cost to the state of SGD 4,415 million, while exemption from this tax in the Amazon costs about SGD 2,207 million.

Similarly, the data reported by the MEF in the macro framework indicates an income tax expense of S/1627 million.

It is expected that in 2023 exceptions will be concentrated in the agricultural sector (52.1%) and will not affect the sector of financial intermediation.
(42.5%).

Using this data, the MEF has calculated that the resources the government will no longer receive as a result of the tax break next year will be SGD 2,732 million higher than what is recorded for this year 2022.

But if you remove tax incentiveswhich include not only liability exemptions and deductions, but also tax exemptions and tax refunds, the amount recoverable in the short term will be S$15,114 million.