Singapore will increase its goods and sales tax (GST) from seven to nine percent in two stages by one percent each in January 2023 and January 2024.
GST is a value-added tax levied on most supplies of goods and services as well as on imported goods.
GST revenue by itself will not be sufficient to cover additional healthcare spending, that is why Singapore needs not only the GST increase but also the changes to personal income tax, property tax and vehicle tax.
The rapidly aging population of Singapore is the source of the rise in social spending, particularly healthcare spending. By 2030, it’s predicted that close to one in four people would be above the age of 65. Thus, in order to lessen the financial burden of future healthcare expenses, the government is anticipated to construct more hospitals and clinics as well as provide senior patients with prescription subsidies.
“GST will continue to be absorbed on publicly subsidised healthcare and education and assure all Singaporeans that we will continue to implement the GST in our unique Singaporean way, with features and schemes that support the less well-off”, said Mr. Lawrence Wong. (Deputy Prime Minister of Singapore)
(Images: Singapore Tourism Board)