6 key takeaways from Singapore Budget 2018 for e-commerce businesses
Finance Minister Heng Swee Keat has revealed the Government’s Budget statement for Financial Year (FY)2018 in Parliament on Monday (19 February). Here are the 6 highlights (and most talked about) every e-commerce business owner need to know:
1.GST WILL BE RAISED BY 2 PERCENTAGE POINTS – The increased GST will be implemented some time from 2021 to 2025. The higher GST = the more skeptical consumers will be when making a purchase decision.
2.E-SERVICES GST TO BE INTRODUCED – digital services from overseas suppliers WILL BE taxed, However, the move will not affect e-commerce for goods. Hooray! Shoppers continue online shopping, and E-commerce businesses, keep calm and continue expanding!
3.HONGBAO FROM FY2017’S BUDGET SURPLUS – Singaporean above 21 will receive an Ang Bao of up to S$300! That’s a generous 700 million in total from the Singapore government – start planning how much you want out of that pie and execute your business plan quick!
4.EXTENDED MEASURES TO HELP BUSINESSES WITH COSTS – With Wage, Credits Scheme to be extended for 3 years; Corporate Income Tax Rebates increase from 20% to 40% capped at S$15,000. Expanding your business and need more hands and brains? Don’t miss this grant!
5.MEASURES TO PROMOTE INNOVATION – Starting from 01 April 2018, the new Productivity Solutions Grant (PSG) will provide funding for up to 70 percent of qualifying costs for small and medium-sized enterprises (SMEs) seeking to adopt off-the-shelf technologies with a defined scope. Enterprise Development Grant (EDG) will be offered to larger companies. Why build your own when you can consider off-the-shelf technology products which are especially useful/ common for e-commerce business, and now it’s covered by the government up to 70%!
6.HELP FOR HOUSEHOLDS – with enhanced GST Voucher scheme, Housing Grants and service and conservancy charges rebate. Needless to elaborate – it’s again, more cash rebate = more spending power = more opportunities for your business.
Wait no more! Take the first-mover advantage, pull out the business plan you have and act now.
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