Chart of the day: See how tax rates have changed since 1986

The CIT has been falling whilst the GST has been rising.

This chart from EY shows the movement of Singapore's actual rates for corporate income tax (CIT), individual, and goods and services tax (GST) from 1986 to 2017. EY assumes there is no change in tax rates in 2018.

EY observed that CIT has been declining whilst the GST has been increasing.

Since the implementation of the GST in 1994, the rate has gone up from 3% to 7% in 2007 and has not changed in 10 years.

Meanwhile, the CIT rate was cut by over half from 40% in 1986 to 16% in 2016.

EY also observed tat personal income tax usually follows corporate income tax but there has been a divergence in recent years.

Personal income tax rate also dropped from 40% in 1986 to 20% in 2016, but it suddenly rose a bit in 2017.

"Personal income tax could increase as we look at a more progressive tax system," EY concluded.

More From Singapore Business Review

• This weak spot kept Singapore from being the world's freest economy
  

• Singtel to increase stake in Indian telco giant for $555.6m
  

• Singapore's REIT sector is the sixth largest globally