Budget 2022: Government fees, charges frozen for 1 year

THE government will not increase its fees and charges for 1 year from January 2023, to help Singaporeans cope with the impending goods and service tax (GST) hike.

This will apply to to licence fees, as well as fees charged by government agencies for the provision of services, such as school fees, Institute of Technical Education and polytechnic fees, and public carpark charges.

Other help is also on the way: the GST Voucher scheme will be enhanced; and the GST for some services, such as publicly-subsidised healthcare and education, will be continue to be absorbed, Finance Minister Lawrence Wong said during his Budget 2022 statement in Parliament on Friday (Feb 18).

While making these announcements, he reassured Singaporeans that the GST hike will be implemented in a "unique Singaporean way" with features and schemes to support lower-income families.

Town Councils will also be provided with S$15 million more each year to absorb the additional GST payable on service and conveyancy charges.

The GST Voucher scheme - comprising a cash payout, MediSave top-ups and utilities rebates - will also be enhanced. These changes will be permanent, said Wong.

They will be implemented together, before the GST rate increases, so that Singaporeans can benefit from both schemes at the same time.

The service and conservancy charges rebate will be made a permanent component of the scheme.

The assessable income threshold for the GST Voucher - Cash scheme will be increased to S$34,000 from S$28,000 previously to cover more Singaporeans.

Finally, the quantum of the GST Voucher - Cash payout will be increased to S$500 for those living in homes with annual values of S$13,000 and below.

It will be increased to S$250 for those living in homes with annual values of between S$13,000 and S$21,000.

Wong said the enhanced GST Voucher scheme will fully offset the total GST that retiree households living in 1 to 4-room Housing and Development Board (HDB) flats have to pay. Retirees living in bigger flats will also have their GST offset by a "significant amount".

As for low-income households who do not have elderly family members, the scheme will offset about half their total GST expenses every year.

Separately, for households that need need additional support, the government will inject an additional S$5 million to the CCC ComCare Fund over the next 5 years.

A total of S$12 million will also be provided to the self-help groups over the next 4 years.

A new Committee Against Profiteering will also be set up. Chaired by Minister of State for Trade and Industry Low Yen Ling, it will address concerns the public has that businesses will use the GST hike as a cover to raise prices.

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