GST hike: Businesses should prepare for impact

MINISTER for Finance Lawrence Wong is widely expected to make an announcement relating to the Goods and Services Tax rate hike on Budget Day. Given the "sooner than later" stance maintained by the government and the lead time required by businesses to prepare for the GST hike, it will be beneficial for companies to start their preparations early.

With the product end of the business often dominating much of management's attention due to disruptions from Covid-19, the tax function (much less a GST rate hike) is often passed over in view of more pressing day-to-day concerns. This mindset of tax being a secondary concern needs to change and the upcoming rate hike may well be the impetus needed for businesses to take a closer look at the impact of the GST on their operations and the state of their GST compliance. Here are some reasons why.

Growing importance of GST