A GST hike in 2022 would imply hope, more than fear

THERE is never a good time to make an unpopular and possibly growth-hurting move such as raising the Goods and Services Tax (GST) rate. But some timings may be better or worse than others.

If the government decides to implement this hike in 2022, as suggested in Prime Minister Lee Hsien Loong's New Year Message, this would point to its confidence in Singapore's continued recovery.

In his message on Friday evening, Lee implied that the time was ripe. Noting that the need to raise GST has been known for some years, he said: "Now that our economy is emerging from Covid-19, we have to start moving on this."