Lower-income groups worry about GST hike
With the impending goods and services tax (GST) hike, Mr Tony Teng, 43, worries about his young family’s growing expenses. The ambulance driver supports his one-year-old daughter, pregnant wife and elderly parents on a $1,800 monthly salary.
Lower-income families like Mr Teng’s are among groups who could be hit hardest when the GST goes up from 7 per cent to 9 per cent some time between 2021 and 2025. The GST was last raised in 2007 from 5 per cent to 7 per cent.
Finance Minister Heng Swee Keat yesterday said the hike is to help pay for “recurrent needs”, such as security demands, healthcare for an ageing population and other social spending. To help lower-income households and seniors, he said the permanent GST Voucher scheme will be enhanced when the tax goes up.
Singapore GST Finance People
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