Govt has to 'start moving' on GST increase in Budget 2022, as economy emerges from Covid-19: PM Lee
Prime Minister Lee Hsien Loong.
- The Government has to "start moving" on the planned GST increase from 7 to 9 per cent, said PM Lee Hsien Loong
- Budget 2022 will lay the basis for "sound and sustainable government finances for the next stage of Singapore’s development", Mr Lee said in his New Year message
- 2022 will be a “time of transition”, as Singapore's economy rebounds and international travel opens up further
- Singapore will also press ahead with bringing in migrant workers and ensuring workers from abroad complement the Singaporean workforce
- In the longer term, Mr Lee said the authorities would continue transforming industries, and help firms restructure and workers upgrade their skills
Published December 31, 2021
SINGAPORE — With Singapore's economy emerging from the Covid-19 crisis, the Government has to "start moving" on the planned increase in the Goods and Services Tax (GST) from 7 per cent to 9 per cent, said Prime Minister Lee Hsien Loong on Friday (Dec 31).
The Budget statement on Feb 18 will, therefore, lay the basis for "sound and sustainable government finances for the next stage of Singapore’s development", Mr Lee said in his New Year message.
The prime minister reiterated that Singapore needs a vibrant economy to generate the resources it needs to realise its goals.
In addition, the Government must have reliable and enough revenues to carry out its social programmes.
"It needs to raise additional revenues to fund the expansion of our healthcare system and support schemes for older Singaporeans. Those who are better off should contribute a larger share, but everyone needs to shoulder at least a small part of the burden," Mr Lee said.
He noted that this is the rationale behind raising a broad-based tax such as the GST, which would be coupled with a comprehensive scheme of offsets to cushion the impact on lower-income households.
Adding that the Government has seen this need coming for some years, Mr Lee said: "Now that our economy is emerging from Covid-19, we have to start moving on this."
Mr Lee said that Singapore's system would remain progressive and fair, with the GST forming an important component of its system of taxes and transfers, which also includes income and wealth taxes.
In 2018, Mr Heng Swee Keat, then Finance Minister and now Deputy Prime Minister, announced plans to raise the GST from 7 per cent to 9 per cent sometime between 2021 and 2025. The proposed increase was later delayed to between 2022 and 2025 because of the pandemic.
In this year's Budget statement, Mr Heng said that the Government could not put it off for too long, and would have to do so "sooner rather than later, subject to the economic outlook”.
Budget 2022 will be delivered by Mr Lawrence Wong, his first since he was appointed Finance Minister in May this year.
Source: https://www.todayonline.com/singapo...-2022-economy-emerges-covid-19-pm-lee-1781656
