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 thecurrent 7 percent to 8 percent from next year and 9 percent in 2024, Finance Minister Lawrence Wong hassaid.
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 thegovernment and contribute to a more equitable revenue structure.
Singapore wants to increase tax revenue to support future publicspending activities, which the government estimates to reach more than 20percent of its Gross Domestic Product (GDP) by 2030.
Over the past twoyears, the Singaporean Government has committed to spending 100 billion SGD (over74 billion USD) to support people, businesses and the economy to overcome difficultiescaused by the COVID-19 pandemic.
Wongalso announced an additional support package worth 500 million SGD (372 millionUSD) to assist employments and businesses and proposed spending 560 millionSGD to help its residents cope with the rising cost of living.
The overall budget deficit for 2021 financial year is expectedto 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-19prevention measures. Its economy grew 7.6 percent in 2021 – the highest growth inmore 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 carbontax from 2024, he said./.
