GST: Don’t tax the poor

GST: Don’t tax the poor

The Independent·2018-02-25 14:20

Do we need to raise the GST?

Ah, you may be asking the wrong question. Or are we? “We are not raising the GST now but we are giving you notice that we will be raising it by two percentage points from 7 to 9 between 2021 and 2025 – with the final decision depending on the prevailing economic conditions”. So, what is the right question? Frankly, I am a bit stymied though I suspect it has everything to do with the next General Election.

Basically, Finance Minister Heng Swee Keat is saying: “We have done well economically. We have a $9.6 billion surplus. But a number of near-tectonic changes are already upon us, so we have to position ourselves well to deal with them. An ageing society is the most impactful of these and we have to find the money to take care of this very serious problem. We will do everything to stretch the dollar and be frugal so that we spend only what we earn and not burden the next and future generations with bills not incurred by them.”

Singapore Government Tax