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Analysts, however, say the government might be upping so-called sin taxes in lieu of wealth taxes to help fund greater social spending—such as improved health-care benefits for elderly citizens, which were also announced Friday.
“There has been quite a buzz about taxing the wealthier but no change was proposed in the budget in that respect,” said Wu Soo Mee, a Singapore-based partner at accounting firm Ernst & Young.
Hefty spending plans to support the elderly also mean income tax rebates aren’t likely this year, she said.
As of Friday, duties on cigarettes and manufactured tobacco products are now 10% higher. The increase marks the first change to these duties since 2005 and, according to Mr. Tharman, who is also finance minister, could curb the increase in smoking prevalence among Singaporeans, particularly those aged 18 to 29
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