(Bloomberg) -- Singapore may need a property gains tax or an inheritance tax to address wealth inequality in the city-state, The Straits Times cited Ravi Menon, managing director of the Monetary Authority of Singapore, as saying.
To encourage an inclusive society, it may make sense to shift the balance in the country’s tax structure away from taxing income toward taxing wealth, the publication reported Menon as saying at an Institute of Policy Studies lecture.
The widening wealth gap across the world has historically been driven most strongly by property investments, Menon said.
In Singapore, “if price increases in private housing consistently outstrip that in public housing, wealth inequality will worsen over time, even if not to the same extent as in many other countries,” he said. The city-state does not currently impose a property gains tax or an inheritance tax, the Straits Times said.
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