GST to increase in April 2018

[zack14]

SINGAPORE -- Singapore is expected to raise goods and services tax for the first time in more than a decade sometime in the fiscal year starting in April, say economists.

Francis Tan, an economist at United Overseas Bank, sees the government hiking GST to 8%, from the current 7%. He expects another hike to 9% next year.

Citigroup's Kit Wei Zheng also sees the likelihood of a 1 or 2 percentage point increase in GST. "We can't preclude the probability (the government) may use the recent growth rebound to pursue counter-cyclical fiscal policy via GST hike."

The government is expected to make the announcement Monday as part of its 2018 budget for the year starting April 1. Singapore is well-known for its low-tax regime that helped its transformation from a small port to a major financial center. But faced with an ageing population and structural growth issues, the government has to consider various options to raise revenue.

https://asia.nikkei.com/Politics-Ec...en-hiking-GST-for-first-time-in-over-a-decade

 

[andyhtc]

If GST is increased, it will not be just a 1-2% effect. The chain effect caused by vendors jacking up their prices is likely to be much higher.

 

[pcmdan]

They will definitely take this opportunity to increase price more and blame it on GST (a.k.a govt).

The best opportunity liao

 

[havetheveryfun]

If GST is increased, it will not be just a 1-2% effect. The chain effect caused by vendors jacking up their prices is likely to be much higher.

They jack up because of the multiplier effect.

E.g. When supplier buy from fishermen, maybe already pay GST. When fishermen rent the boat from someone else, maybe pay GST too. Then when supplier sell to the stall owner, again there is GST. Then when the stall owner sell to us, again we pay GST again. Imagine if the chain is even longer !

 

[pcmdan]

They jack up because of the multiplier effect.

E.g. When supplier buy from fishermen, maybe already pay GST. When fishermen rent the boat from someone else, maybe pay GST too. Then when supplier sell to the stall owner, again there is GST. Then when the stall owner sell to us, again we pay GST again. Imagine if the chain is even longer !

If everyone is GST registered, they can claim back the GST they paid.

 

[revhappy]

If GST rises inflation rises, so SGD will be kept stronger I guess. So USDSGD will fall more?

Sent from Xiaomi REDMI NOTE 4 using GAGT

 

[Toni90]

I bet they will not raise GST.

 

[final1]

Will see how honest the politicians are tomorrow.

https://www.gov.sg/factually/conten...aise-the-gst-after-the-next-general-elections

"Is the Government planning to raise the GST after the next General Elections?
There is no basis to these claims, and they are inconsistent with what the Government has recently stated.
06 Aug 2015"

 

[Ed.YEO]

SINGAPORE -- Singapore is expected to raise goods and services tax for the first time in more than a decade sometime in the fiscal year starting in April, say economists.

Francis Tan, an economist at United Overseas Bank, sees the government hiking GST to 8%, from the current 7%. He expects another hike to 9% next year.

Citigroup's Kit Wei Zheng also sees the likelihood of a 1 or 2 percentage point increase in GST. "We can't preclude the probability (the government) may use the recent growth rebound to pursue counter-cyclical fiscal policy via GST hike."

The government is expected to make the announcement Monday as part of its 2018 budget for the year starting April 1. Singapore is well-known for its low-tax regime that helped its transformation from a small port to a major financial center. But faced with an ageing population and structural growth issues, the government has to consider various options to raise revenue.

https://asia.nikkei.com/Politics-Ec...en-hiking-GST-for-first-time-in-over-a-decade

uob？？？
lee ahleng miah anjing lah！

 

[SBC]

Will see how honest the politicians are tomorrow.

https://www.gov.sg/factually/conten...aise-the-gst-after-the-next-general-elections

"Is the Government planning to raise the GST after the next General Elections?
There is no basis to these claims, and they are inconsistent with what the Government has recently stated.
06 Aug 2015"

Honarable 70%

 

[dexboi]

With all the experts and medias talking about GST, it's most likely gonna be true.

Such are some psychological methods to prime the public so it doesn't come as a shocking news when it is officially announced.

 

[Shion]

Long anticipated that it will increase...

 

[andyhtc]

We definitely need a bigger and younger workforce to support our ageing population and rejuvenate our infrastructure. If not, our taxes could keep on climbing and make life difficult for the citizens and companies.

Increasing birth rate is the way to go but it is slow and unable to catch up with the rate of ageing in our workforce. Increasing productivity and import of younger workforce could be other solutions.

However, more must be done to provide social support and medical care to the citizens.

 

[cscs3]

SINGAPORE -- Singapore is expected to raise goods and services tax for the first time in more than a decade sometime in the fiscal year starting in April, say economists.

Francis Tan, an economist at United Overseas Bank, sees the government hiking GST to 8%, from the current 7%. He expects another hike to 9% next year.

Citigroup's Kit Wei Zheng also sees the likelihood of a 1 or 2 percentage point increase in GST. "We can't preclude the probability (the government) may use the recent growth rebound to pursue counter-cyclical fiscal policy via GST hike."

The government is expected to make the announcement Monday as part of its 2018 budget for the year starting April 1. Singapore is well-known for its low-tax regime that helped its transformation from a small port to a major financial center. But faced with an ageing population and structural growth issues, the government has to consider various options to raise revenue.

https://asia.nikkei.com/Politics-Ec...en-hiking-GST-for-first-time-in-over-a-decade

You dont need a economist to tell you these.

 

[BBCWatcher]

Even if the government breaks its election promise (not a good idea!), I don't see any way there'd be a GST increase in April, 2018. It's too soon, too quick. Retailers and others genuinely need more time to prepare.

The previous GST increase was announced on February 15, 2007, and effective July 1, 2007.