SINGAPORE — Members of the public are invited to submit feedback on the proposed changes to the Goods and Services Tax (GST) Act including the two-stage hike in the GST from 7 per cent currently to 9 per cent in 2024.
The two-stage hike in the GST is among five proposed changes in the GST Act, the Ministry of Finance said in a statement on Monday (13 June).
On 18 February, Finance Minister Lawrence Wong announced the two-stage GST hike during his 2022 Budget speech, saying that the GST revenue will help finance Singapore's healthcare expenditure and elderly care. Acknowledging Singaporeans’ concerns about rising prices, Wong also unveiled a slew of support measures including raising the Assurance Package to $6.6 billion comprising cash payouts, MediSave top-ups and others.
The other proposed changes relate to improvement in GST administration, clarity of existing rules, and consistency in the GST treatment for the provision of travel arranging services by local and overseas suppliers.
Feedback on the amendments should be submitted by 4 July.
The GST was introduced in 1994 as part of a shift from direct taxes to indirect ones to boost Singapore's international competitiveness. It was first raised from 3 per cent to 5 per cent over 2003 and 2004 - by one percentage point at a time - and then to 7 per cent in 2007.
Stay in the know on-the-go: Join Yahoo Singapore's Telegram channel at http://t.me/YahooSingapore