Budget 2022: GST hike delay welcomed by businesses, but watchers ask if the move is fiscally prudent
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THE delay and staggering of the Goods and Services Tax (GST) hike come as sweet relief to businesses and consumers alike, but some watchers are pondering if it is ideal, given the urgent need for government replenish the coffers.
Finance Minister Lawrence Wong on Friday (Feb 18) announced a 2-step increase for the GST from the current 7 per cent - to 8 per cent from Jan 1, 2023 and 9 per cent from Jan 1, 2024.
Noting that he had carefully considered the overall situation - the ongoing pandemic, the state of the economy and the outlook for inflation - he said: "Our revenue needs are pressing, but I also understand the concerns that Singaporeans have about the GST increase taking place at the same time as rising prices."
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