- SINGAPORE – Singapore VAT (GST) excise duty will be increased from next year
- Finance Minister Lawrence Wong announced the increase during his budget speech on Friday (February 18) 2022
- Measures to reduce GST expansion and reduce the impact of GST’s rise in Singapore
- GST Voucher (Adult Bonus) – Payment of $ 600 to $ 900 for eligible adults 55 years and older over the next three years
- The GST was introduced in 1994 as part of the removal of direct taxes to indirect taxes to boost Singapore’s international competitiveness
SINGAPORE – Singapore VAT (GST) excise duty will be increased from next year and will be divided into two phases. These two phases will show the actual result of the next two years from 7 percent to 8 percent on January 1, 2023, and 8 percent to 9 percent on January 1, 2024. The budget has focused on a strong point to raise the strengthen power of Singapore health and aged care.
Finance Minister Lawrence Wong announced the increase during his budget speech on Friday (February 18) 2022 and said that revenue from the GST rise would go towards supporting the cost of Singapore health care and aged care.
Measures to reduce GST expansion and reduce the impact of GST’s rise in Singapore
Wong announced another $ 640 million in the $ 6 billion Assurance Package announced by his predecessor, Deputy Prime Minister Heng Swee Keat, in the 2020 budget.
The Guarantee package presented by Heng has provided all Singaporeans with cash payments of between $ 700 and $ 1,600 within five years, so most households will have enough to pay for at least five additional GST costs over the next five years.
The new $ 6.6 billion packages launched by Wong will now provide the following payments: Payment – $ 700 to $ 1,600 for all Singaporeans 21 years and older over the next five years. U-Save Discounts – $ 330 to $ 570 Additional U-Save discounts for eligible homes over the next four years.
GST Voucher (Adult Bonus) – Payment of $ 600 to $ 900 for eligible adults 55 years and older over the next three years.MediSave top-ups – $ 450 added over the next three years for Singapore children aged 20 and under and adults 55 years and older.CDC vouchers – for all Singaporean families ($ 400 vouchers ($ 200 each in 2023 and 2024)
The government will also provide ongoing support for the development of the GST Voucher system in three ways: Discounts on service costs and savings will be made a permanent part of the plan. The GST voucher limit will increase from $ 28,000 to $ 34,000 to pay more Singaporeans. Higher Prices: Those living in homes with an annual price of less than $ 13,000 will see inflation rise from $ 300 to $ 500 by 2023. $ 150 to $ 250.
The GST increase was made last year during the COVID-19 violence
GST increase was announced by DPM Heng in 2018. The increase was halted last year as Singapore faced COVID-19, but Prime Minister Lee Hsien Loong said in his New Year’s message that the Government would have to “start moving” the economy forward from the epidemic.
The GST was introduced in 1994 as part of the removal of direct taxes to indirect taxes to boost Singapore’s international competitiveness. It first increased from 3 percent to 5 percent in 2003 and 2004 – one percent at a time – and then 7 percent in 2007.
Statement by the Finance Minister Lawrence Wong
“I have carefully considered the whole situation: the ongoing epidemic (COVID-19), the state of our economy, and the perception of inflation. Price,” he said.”So I decided to postpone the GST rise to 2023 and participate in a two-step rise.”