The Finance Minister has announced in his 2018 Budget on 19 February 2018 that the government plans to increase the GST rate by 2%, from 7% to 9%, sometime in the periods of 2021 to 2025.
The exact timing for the increase will depend on the state of the economy, growth in expenditure and the buoyancy of existing taxes.
The Finance Minister added that the GST hike will be implemented in a progressive manner, with the following measures, the Government:
- will continue to absorb GST on publicly subsidised education and healthcare,
- enhance the permanent GST Voucher (GSTV) scheme when the GST is increased, and
- also implement an offset package for a period of time to help Singaporeans adjust to the GST increase.
The GST was last raised in 2007, when it went up from 5 to 7 per cent. It was announced by then-Finance Minister Lee Hsien Loong during the Budget speech on 15 February 2007, and took effect a few months later on 1 July 2007.
Further details will be provided once the timing of the GST increase has been determined.
Source: Channel NewsAsia, 19 February 2018