Exact timing of GST increase yet to be decided

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GST

On 28 Feb, Finance Minister Heng Swee Keat said that the date for the 2% increase in Goods and Services Tax (GST) has yet to be decided and that the government will exercise care in doing so.

In response to the reservations on the approach and timing of the GST hike, Mr. Heng highlighted that the increase is necessary in light of rising needs in healthcare and other areas.

He further explained that permanent healthcare schemes and other parts of the healthcare system would continue to increase structurally due to the aging population. Hence, a need to increase GST to support this structural increase in healthcare, among the other critical needs like pre-school education and security.

“This is also of a completely different scale and nature from cohort-based packages set aside for the Merdeka and Pioneer generations,” Mr Heng added.

Separately, member governments in the Organization for Economic Cooperation and Development are required to acquire an estimation of additional median revenues of 6.5% in the gross domestic product (GDP) by 2060 to address the growing fiscal burden.

Meanwhile, the government will continue to monitor the current economic conditions, spending trends and Singapore’s revenue carefully.


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If you’d like to contribute your story to us, drop us an email at editors@sureboh.sg and we’ll review it. We read each submission that comes to us within two weeks of receiving it.

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