Singapore will raise its goods and service tax from Jan 1, 2023. The GST hike is split into two schedules for the consecutive years 2023 and 2024. Almost all goods and services fall under the GST, which was different from the case earlier. Only imported goods that are priced above S$400 were subjected to GST.
GST has mandated Singapore-based businesses with an annual turnover of S$1 million. However, with ongoing inflation in Singapore, in August, it touched a 14-year high of 7.5% against the 2% recommended by Singapore’s central bank. Opposition parties are outraged at the government of Singapore, calling it poor timing. According to expert economists of the country, Singapore’s lowest earners will be most affected by the GST.
Singapore plans for a backup with financial aid worth S$6.6 billion to cope with inflation and reduce the GST effect on Singaporeans. The assurance package of S$6.6 billion is in view to comfort 2.9 million adults. The funds are utilized by people based on their income and property ownership status. Singapore’s Deputy Prime Minister and Finance Minister
The Finance Ministry says that the GST hikes are helpful and are planned to keep social well-being in mind. The GST hike will help to spend more on the welfare of the people. Ministry of Finance reported that it will increase healthcare spending from S$11.3 to S$27 by 2023
Take Away:
- Singaporeans with an average income are the most affected.
- Singapore-origin businesses with an annual turnover of S$ 1 million are mandated to register for GST and are liable for GST on taxable goods.
- The GST will rise from 7% to 8% for the year 2023.
- Published By Team Genuine Reporter