Pushing back GST hike a right move amid challenging climate

Government also sets aside S$6b Assurance Package to cushion impact when it kicks in

Published Tue, Feb 18, 2020 · 09:50 PM

Singapore

THE government's decision to delay the increase in the Goods and Services Tax (GST) to some time between 2022 and 2025 was welcomed yesterday, coming amid the current gloomy environment.

On Tuesday, Deputy Prime Minister and Finance Minister Heng Swee Keat said the government will not raise the GST in 2021, but will instead defer the increase to some time between 2022 and 2025; it also set aside a S$6 billion Assurance Package to cushion the impact when it kicks in.

During Budget 2018, Mr Heng had said the GST would be raised from 7 per cent to 9 per cent some time between 2021 and 2025 to help meet healthcare spending.

In his Budget speech yesterday Mr Heng said: "We will not be able to put off the increase indefinitely. In fact, this (Covid-19) outbreak has reinforced the importance of continued investment in our he…