Local Non-government Organsiation, Humanitarian Organization for Migration Economics (H.O.M.E.) issues its response towards Budget 2015.
HOME welcomes the announcement that the foreign worker levy hike will be deferred for a year, and levy concessions have been made for families which hire foreign domestic workers. However, we urge the government to abolish levies completely. Since we already have policies which impose quotas and dependency ceilings to regulate the demand of foreign workers, there is no need to impose such an onerous tax burden on employers.
When business costs are high, employers will pass the burden of this increased cost onto the worker by demanding kickbacks or letting wages remain stagnant. Low wage foreign workers, who have little bargaining power can do little about this.