Wed, Jan 20, 2021 – 11:28 AM
MORE grants and subsidies can help Singapore maximise its potential as a green finance hub in Asean, said KPMG in its proposals for Budget 2021.
Food security and support for cash-strapped businesses are also on its Budget wishlist, released on Wednesday.
Ajay Kumar Sanganeria, partner and head of tax at KPMG in Singapore, said the Republic can become a green finance hub by facilitating sustainable finance deals in line with international standards and regulations.
The audit, tax and advisory firm is proposing a special grant of up to S$250,000 for investments in platforms linked to decarbonisation.
The Covid-19 pandemic has presented Singapore with an opportunity to “re-create its business landscape and explore new possibilities for growth”, KPMG said.
Supporting the development of green economy-related projects, businesses and services would help create sustainable jobs in a range of different sectors.
Examples of such opportunities include cleantech, green buildings, waste management and green transportation.
KPMG is also proposing grants to co-fund half of the salaries for sustainability teams in organisations, and a property tax rebate for green buildings.
Meanwhile, disruption to food supply chains as a result of the pandemic has highlighted the need for food supply chain resilience. To boost food security, KPMG is proposing the adoption of urban farming, using existing real estate assets and advocating for alternative protein sources.
To this end, the firm is calling for tax incentives for companies operating in agritech and aquatech. It is suggesting several enhancements to the R&D Tax Incentive Scheme that would cover a wider range of expenses and investments.
KPMG is also proposing new tax incentives such as a tiered concessionary income tax rate based on production capacity and nutrition value, and a property tax rebate for properties used for food production.
As the pandemic has severely impacted Singapore’s companies, with around 35,000 entities having shut down between January and October last year, KPMG is suggesting more should be done to help businesses.
It is recommending a property tax remission for 2021 and 2022, and longer instalment plans for income tax payments.
“In the past year, the Singapore government has rolled out many programmes that have helped to soften the impact of Covid-19 among individuals and organisations,” said Mr Sanganeria. “Our proposals for Budget 2021 will further strengthen existing policies as well as propel Singapore to emerge from the crisis stronger than ever.”
