International economic research company BMI research concluded in its report that the Singapore PAP government will raise GST in order to raise more revenue for its populist policies today (Sep 14).
“One key area to watch will be the goods and services tax (GST), which has been utilised by the government as a tool to shore up revenue amid declining income and corporate tax rates over the past two decades. While the recent increase in the top marginal income tax rate will provide some support to the government’s annual intake, Singapore’s ageing population and the government’s growing commitment towards supporting low-income elderly citizens will likely necessitate additional revenue streams, and an increment to the current GST level of 7.0% is a prime candidate for adjustment”
Photo of GST payout from CNA
Raising the GST will inevidently increase the amount of taxes on the low income and unemployed. When GST was increased multiple times from 2003, Singapore saw rapid inflation and a jump in cost of living. The PAP government however claimed that poor people are helped by increasing GST because of GST cash vouchers.