Economic, social pressures to impact global tax rates in future: KPMG survey

Audit service firm KPMG.
Audit service firm KPMG.PHOTO: ST FILE

SINGAPORE - Taxpayers around the world can expect to pay more taxes in future, a new survey by tax advisory services KPMG has found.

"Many governments worldwide continue to update their tax legislation and expand their tax systems to repay debt and pay for increased social welfare, even as the memory of the last global financial crisis lingers."

Mr Tay Hong Beng, head of tax at KPMG in Singapore, said since the 2008 global financial crisis, governments worldwide have been trying to keep economies active and healthy, and many have run up large debts in doing so.

"With many economies emerging out of recession and into growth, we are seeing updates to global tax systems to increase revenues so governments can pay down debt."

He added that people's expectations of the level of care from the state or governments have increased all across the globe.

"Social welfare is expensive. Governments are caught between meeting the expectations of their populations and finding the means to pay for them," said Mr Tay.

Singapore is not immune to that, he added, saying that the Republic's budgets have increasingly focuses on building a brighter future, along with strengthening social security.