Singapore will raise its goods and services tax (GST) from the current 7 percent to 8 percent from next year. (Photo: Xinhua/VNA) Singapore (VNA) – Singapore will raise its goods and services tax (GST) from the current 7 percent to 8 percent from next year and 9 percent in 2024, Finance Minister Lawrence Wong has said.
The Singaporean Government also intends to increase income tax for high-income earners as well as property tax and tax on luxury vehicles, he said in his budget statement in Parliament, adding that the tax adjustment will secure additional revenue for the government and contribute to a more equitable revenue structure.
Singapore wants to increase tax revenue to support future public spending activities, which the government estimates to reach more than 20 percent of its Gross Domestic Product (GDP) by 2030.
Over the past two years, the Singaporean Government has committed to spending 100 billion SGD (over 74 billion USD) to support people, businesses and the economy to overcome difficulties caused by the COVID-19 pandemic.
Wong also announced an additional support package worth 500 million SGD (372 million USD) to assist employments and businesses and proposed spending 560 million SGD to help its residents cope with the rising cost of living.
The overall budget deficit for 2021 financial year is expected to reach 5 billion SGD, while that of 2022 will be 3 billion SGD, Wong said.
Total public spending for 2022 is projected at 102.4 billion SGD, higher than the 98.4 billion SGD of 2021. Singapore’s economy is forecast to grow at 3-5 percent this year as the country continues to open borders and loosen COVID-19 prevention measures. Its economy grew 7.6 percent in 2021 – the highest growth in more than a decade – after it contracted by 5.4 percent in 2020.
The government plans to continue tightening the policy on foreign workers, increasing the salary requirements relating to issuing work visas for foreign labourers. To achieve the goal of carbon neutrality, Singapore will increase the carbon tax from 2024, he said./.
