SDP calls for GST reduction to 7% in response to rising tariffs & costs
The Singapore Democratic Party (SDP) has called on the government to immediately reduce the Goods and Services Tax (GST) from 9% to 7% in light of the uncertainty surrounding the impact of United States (US) tariffs on Singapore and other countries.
The GST is currently set at 9%, following increases of 1% each year in 2023 and 2024.
“This will go a long way to help Singaporeans cope with the effects of rising costs that may develop with the imposition of the tariffs,” the SDP shared in a statement on Wednesday (9 April).
Source: Singapore Democratic Party (SDP) on Facebook
In addition to the GST reduction, the SDP also called for the lowering of prices and fees that have been raised in recent years, urging the government to revert them to pre-Covid levels.
This includes water rates, public transport fares, and ERP fees.
The party emphasised that this call is the “first of a series of measures to restructure our economy to level up society and narrow income and wealth inequality”.
It further stated that Singapore’s unity and resilience in a “troubled world” will depend on the government’s ability to “adequately and meaningfully” support its people.
PM Wong says tariffs will impact economic growth
On 2 April, US President Donald Trump imposed tariffs on numerous countries worldwide, including Singapore.
Despite not having a trade surplus with the US, Singapore faced a baseline 10% tariff on its exports.
On 8 April, Singapore Prime Minister (PM) Lawrence Wong expressed his “very disappointed” reaction to the move, noting that the tariffs would have a negative effect on the country’s economy.
“In the near term, we expect weaker global growth, which means external demand for our goods and services will fall,” he said.
Source: CNA on YouTube
He also warned that Singapore’s economic growth this year will be “significantly impacted”, with potential effects on jobs.
To address this, a task force will be set up to assist businesses and workers.
The Worker’s Party also voiced its disappointment and concern over the US tariffs in a statement on 8 April.
Source: The Worker’s Party on Facebook
“No response should be ruled out,” the party declared, urging Singapore to remain united and initiate bilateral negotiations with the US.
PSP confident in Singapore’s ability to overcome challenges
At a press conference last Sunday (6 April), Progress Singapore Party (PSP) Chairman Tan Cheng Bock suggested that the government was using the fear of tariffs to influence voters.
Source: Progress Singapore Party on Facebook
On 9 April, PSP Secretary-General Leong Mun Wai clarified that the party had “no intention of downplaying the new tariffs”.
He acknowledged the tariffs as a “game-changer” for the free trade system that has long supported Singapore’s prosperity.
Mr Leong also expressed confidence in Singapore’s ability to navigate the economic challenges ahead.
“We will always put country ahead of party even as we challenge the PAP on its policy ideas,” he said.
SDP reaffirms stance after 90-day pause on tariffs
On 10 April, President Trump announced a 90-day pause on higher tariffs, excluding those imposed on China.
In response, an SDP spokesperson told MS News that the party’s position remains unchanged, “especially given the volatility of the global economy at present”.
She reaffirmed that the proposals outlined in the party’s statement align with its existing positions on GST and the cost of living.
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Featured image adapted from Singapore Democratic Party (SDP) on Facebook and ABC News.
