On 1 Jan 2024, the Goods and Services Tax (GST) on products in Singapore increased by 1% from 8% to 9%.
But even before that, many folks had been complaining about rising costs of essentials like meals and groceries.
Adding to the discussion, Mr Lee Hsien Yang — brother to Prime Minister Lee Hsien Loong — took to Facebook to question the GST hike’s necessity.
Claiming that it would contribute to inflation, Mr Lee added that Government handouts are not enough to ease the financial pressure.
On Monday (1 Jan), Mr Lee posted on Facebook, questioning the necessity of the recent GST hike.
“This is a 12.5% increase in GST,” he said, comparing the 1% increase to the rate of the tax in 2023.
I am not convinced this is necessary.
He added that it would “contribute to inflation” and “cause economic hardship.”
“The handouts to mitigate this are temporary and the increase is permanent,” Mr Lee noted.
He went on to point out that back in 2015, PM Lee had not hinted at a future increase in GST.
The Government “changed its mind” only 2.5 years later in 2018. At that time, the justification for the hike was to fund healthcare for Singapore’s ageing population.
Citing data from the International Monetary Fund (IMF), the younger Mr Lee claimed that Singapore was running “a chronic balance account surplus”.
“Singapore has experienced a significant deficit only once, in 2020, as a result of COVID,” he said.
A rise in GST now with all the attendant hardship it will engender for Singaporeans is callous and unjustifiable.
“Rises in water, electricity and gas prices are adding fuel to this fire,” Mr Lee warned.
His post has since sparked debate, with many users expressing their opinions on the GST hike.
One netizen described it as an unwise move, pointing out that the rise in GST is permanent for Singaporeans.
Source: Facebook
Echoing Mr Lee’s thoughts, the commenter agreed that Government assistance for the wider public is only temporary, implying that they’re insufficient to cope with the increase.
Another Facebook user claimed that the GST hike could have a significant impact on the cost of living.
Source: Facebook
Many others concurred, expressing their disapproval towards the changes, while some tried to rationalise the move.
Also read: Giant To Absorb 1% GST Hike For 700 Essential Products In First Half Of 2024
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Featured image adapted from Lee Hsien Yang on Facebook and Aleksandr Zykov on Flickr.
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