Assurance Package Increases To S$8B, Will Help S’porean Households Offset GST Hike

Assurance Package Gets S$1.4B Boost To Help Households Offset GST Hike

Back in 2020, the government introduced the Assurance Package to help Singaporean households cushion the impact of the planned GST hike.

On Monday (7 Nov), Deputy Prime Minister (DPM) Lawrence Wong said there will be a S$1.4 billion boost to the package, increasing its worth to S$8 billion.

Previously, a top-up of S$640 billion was announced in Budget 2022 as well.

Mr Wong highlighted that with higher inflation, household expenditure, and additional GST expenses, the size of the package would grow accordingly.

Lawrence Wong says Assurance Package will offset impact of GST hike

Speaking at Parliament on Monday (7 Nov), Mr Wong said the government will ensure that the package balances the impact of the GST hike for the majority of Singaporean households for at least five years, and 10 years for lower-income households.

In 2023, the GST will increase from 7% to 8%, and increase another 1% to 9% in 2024.

He highlighted that the Government would help all Singaporeans adjust to the GST increase, especially the less well-off.

This Government looks after our people, our families and our seniors. We have been expanding support for their needs, including their healthcare, social and ageing needs, and we will continue to do more.

With this, he also noted that GST Vouchers, which consist of cash, MediSave, USave rebates, and rebates for service and conservancy charges bills, will continue to be dispensed to households.

The Government will also absorb GST for subsidised education and healthcare services once the Assurance Package is implemented.

Mr Wong said they hope to help lower- to middle-income households defray a significant part of their GST expenses permanently via GST vouchers.

GST hike necessary as country needs to expand support

With the Assurance Package boost, Mr Wong stressed the necessary reasons for the GST increase.

GST Hike To 8% In 2023 Will Proceed As Planned, Lawrence Wong Says Move is Necessary

The increase is an important strategy as it provides the country with more resources to meet rising healthcare costs, he said. It also allows for better care of the growing elderly population.

Mr Wong added that the government has been expanding support in the areas of healthcare, social and ageing needs.

They also plan to improve social mobility, invest in upskilling and transition into a green economy and city.

“To achieve all this, we will need more government spending on a structural and recurring basis,” he said.

Hence, this was the reason there were increases in personal income and property tax apart from the GST hike.

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Featured image by MS News.