Lawrence Wong on Goods and Services Tax (Amendment) Bill

A support package to offset the impact on households of the upcoming Goods and Services Tax (GST) hike will be increased by S$1.4 billion, taking it to S$8 billion. This was revealed by Deputy Prime Minister and Finance Minister Lawrence Wong in Parliament on Monday (Nov 7). He said more details of the enhancements to the Assurance Package will be announced in next year’s Budget. GST is set to rise from seven to eight per cent at the start of next year, and from eight to nine per cent from 2024. Mr Wong explained that with higher inflation, household expenditure and additional GST expenses are likely to rise. So, the support package must be correspondingly boosted so that the Government can meet its commitment to ensuring that the impact of the GST hike will be offset for most Singaporean households for at least five years, and for lower-income households for about 10 years. Mr Wong added that the permanent GST Voucher scheme and absorption of GST for subsidised education and healthcare will continue alongside and beyond the Assurance Package. He also reiterated the reason for the GST hike - to meet Singapore’s growing healthcare spending needs, in light of an ageing population. He said that overall, the Government will be spending more “on a structural and recurring basis”, on healthcare and social support, improving social mobility and skills upgrading, and greening the economy and city. That is why apart from increasing GST, he had also announced increases in personal income tax and property tax.