Singapore's financial district (Photo: AFP/VNA) Singapore (VNA) – The Singaporean government will lift the Goods and Services Tax (GST) from the current seven percent to 9 percent in 2021-2025, said the country’s Finance Minister Heng Swee Keat at the parliament on February 19.
He said the exact timing for the adjustment will depends on “the state of the economy, how much the government’s expenditures grow, and how buoyant the existing taxes are."
According to the minister, although the Singaporean government explored various options to manage its future expenditures through prudent spending, saving and borrowing for infrastructure, there is still a gap.
The tax hike is expected to bring almost 0.7 percent of Singapore's gross domestic product per year to government revenue, he added.
The latest GST rise in Singapore took place in 2007.-VNA
He said the exact timing for the adjustment will depends on “the state of the economy, how much the government’s expenditures grow, and how buoyant the existing taxes are."
According to the minister, although the Singaporean government explored various options to manage its future expenditures through prudent spending, saving and borrowing for infrastructure, there is still a gap.
The tax hike is expected to bring almost 0.7 percent of Singapore's gross domestic product per year to government revenue, he added.
The latest GST rise in Singapore took place in 2007.-VNA
VNA
