Singapore may consider implementing property gains tax or inheritance tax to curb wealth inequality, according to the Straits Times, citing Ravi Menon, the nation's central bank chief.
Key highlights:
Wealth inequality may worsen over time if price increases in private housing consistently outstrip that in public housing
May make sense to shift Singapore's tax structure from taxing income towards taxing wealth to promote an inclusive society
Both property gains tax and inheritance tax are currently not imposed in Singapore
Ravi Menon cautioned that taxing wealth has not worked well in many countries, citing the example of 12 European countries that levied wealth tax in 1990 and by 2018, 8 out of the 12 countries had abandoned the tax because of high administrative costs, risk of capital flight and failure to meet redistributive goals
"This is not necessarily a reason for not imposing a wealth tax but a strong caution that designing a good wealth tax is not a trivial exercise," the news outlet cites Menon as saying
* Note: Singapore abolished its inheritance tax or estate duty in 2008.
* Ravi Menon is the managing director of the Monetary Authority of Singapore
Link to the Straits Times' article:
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