Despite the more optimistic outlook, any increase in tax revenue from the economic recovery will likely take time. The theme of Budget 2022 will centre around the 3 Rs, namely Recovery, Resilience and Reform. Unfortunately, the current tax system has leakages and too much tax is borne by a narrow base of compliant taxpayers. In formulating Budget 2022, the government will have to deal with pressures from many angles – from politics, public finance to global competition. With the huge expenditure on Covid-19 stimulus packages, striking a balance in Budget 2022 will be challenging.
