Singapore’s sales tax, known as the Goods and Services Tax (GST), has been kept at 7% since 2007. The government first announced that it plans raise GST to 9% in 2018.
“We have seen this need coming for some years. Now that our economy is emerging from COVID-19, we have to start moving on this,” Lee Hsien Loong said in a New Year message.
More details is expected to be announced during the government’s 2022 fiscal year budget speech on Feb. 18.
Singapore’s economy is likely to expand around 7% this year, marking a recovery from the worst recession induced by the pandemic last year, and grow 3% to 5% in 2022, according to official forecasts.
“The year ahead will be a time of transition. Our economy is recovering steadily… We will progressively phase out emergency support measures as businesses revive,” Lee said.
Source: Economy - investing.com
