Singapore moves to ease public concern over looming tax hike

[The_King]

(Bloomberg) — Singapore is taking steps to ease growing concerns over an imminent increase in taxes, including explainers on social media and in local newspapers over recent weeks to justify the need for the move.

From Facebook posts by the finance minister to articles and opinion pieces in the city-state’s main English-language newspaper, Singapore is seeking to win over a populace facing the largest price spikes in years and a tentative recovery from the pandemic.

The government has signalled its intention to announce an increase in the Goods and Services Tax to 9%, from the current 7%, in the upcoming budget Feb. 18, after opting not to do so last year after the coronavirus plunged the country into its worst recession since independence in 2020.

 

 

Officials have said that such a move is necessary now to address a sharp rise in health care and social spending, and restore finances after two years of pandemic-induced deficits.

Financial assets in the business and trading hub have held up well this year as banks benefit from rising bond yields globally. The Straits Times Index has rallied more than 9% so far in 2022, among the top-performing equity gauges globally. The Singapore dollar is up against most major currencies during the same time, gaining about 0.5% against the greenback.

In two Facebook posts this week, Finance Minister Lawrence Wong shared videos explaining the need for a GST hike. The additional revenue will go toward supporting “growing health care needs and enable us to better take care of our seniors,” he said in a post Wednesday.

Singapore’s health care expenditures have surged in recent years as the population ages, jumping to over S$18 billion ($13 billion) estimated for the current fiscal year, from less than S$4 billion in 2010, according to government data.

Economists at Maybank Investment Banking Group, formerly known as Maybank Kim Eng Research Pte., forecast that a 2 percentage point rise in GST will increase annual collections by S$3.6 billion, which would make it the second-largest contributor to the government’s operating revenue after corporate income tax.

Rising energy and food costs, which have pushed prices higher for things as varied as electricity and cakes, is complicating the drive for a tax hike. The fastest core inflation reading in seven years prompted a surprise tightening of monetary policy by the central bank last month, while Singapore’s recovery is set to slow after rebounding in 2021.

“A GST hike has an inflationary impact, but it is a one-off,” said David Sandison, head of tax at Grant Thornton Singapore Pte., an advisory firm. “It is better to bite the bullet now and get it over with, as the hike itself is an inevitability.”

A GST rise may also pose a political risk to the government, after the main opposition Workers’ Party won a record number of seats in the 2020 general election on a manifesto that included opposition to the tax increase. A move now could further cost the ruling People’s Action Party, Han Fook Kwang, a former editor of the Straits Times newspaper, said in an opinion piece last week.

So far, officials have rebuffed growing calls for a delay. Households will be insulated from the brunt of the GST hike by a S$6 billion package announced in the budget in 2021, the finance ministry said in a reply to a forum post last month in The Straits Times. And irrespective of when the tax is raised, the actual impact will be delayed for years, it added.

“I know many of you are concerned about the cost of living, and this is why we will have a comprehensive set of measures in place to cushion the impact of GST on lower-income and middle-income households, as well as retirees,” Wong said in Wednesday’s video, adding that the government will permanently enhance a GST voucher policy to assist lower-income families.

Other levies may also be announced in the upcoming budget, including an increase in carbon taxes and new wealth taxes.

[The_King]

i know, chicken too expensive eat fish la

[socrates469bc]

1 hour ago, The_King said:

 

 

Officials have said that such a move is necessary now to address a sharp rise in health care and social spending, and restore finances after two years of pandemic-induced deficits.

 

 

for smlj build so many mrt stations when many areas can be better served by bas?????

 

[The_King]

21 minutes ago, socrates469bc said:

 

for smlj build so many mrt stations when many areas can be better served by bas?????

 

WTF so many line

[aaur4man]

ease lanjiao la

[Standing Birdy]

 

[socrates469bc]

19 hours ago, The_King said:

WTF so many line

 

pappyland dont even have 21m people but mrt lines more complicated than shanghai metro.

 

one of limpeh's favorite saturday activity is to take different lines to explore shanghai by foot.

 

wahahahahahahaha

 

[The_King]

1 hour ago, socrates469bc said:

 

pappyland dont even have 21m people but mrt lines more complicated than shanghai metro.

 

one of limpeh's favorite saturday activity is to take different lines to explore shanghai by foot.

 

wahahahahahahaha

 

$$$$$$$$

 

 

Machine is cheaper then human

[Huat Zai]

23 hours ago, socrates469bc said:

 

for smlj build so many mrt stations when many areas can be better served by bas?????

 

 

23 hours ago, The_King said:

WTF so many line

 

[Huat Zai]

On 2/11/2022 at 7:49 PM, The_King said:

 Singapore is taking steps to ease growing concerns over an imminent increase in taxes, including explainers on social media and in local newspapers over recent weeks to justify the need for the move.

 

 

Oh I see their effort now

 

‘Proper and correct’ for COP to refer Workers' Party leaders to public prosecutor: Ong Ye Kung

 

https://www.channelnewsasia.com/singapore/cop-report-workers-party-pritam-singh-faisal-manap-ong-ye-kung-2494431

Edited February 12, 2022 by Huat Zai

[XianGe]

1 hour ago, Huat Zai said:

 

Oh I see their effort now

 

‘Proper and correct’ for COP to refer Workers' Party leaders to public prosecutor: Ong Ye Kung

 

https://www.channelnewsasia.com/singapore/cop-report-workers-party-pritam-singh-faisal-manap-ong-ye-kung-2494431

Wif team Thor gone no nid afraid of any challenge in next ge

[socrates469bc]

14 hours ago, Huat Zai said:

 

Oh I see their effort now

 

‘Proper and correct’ for COP to refer Workers' Party leaders to public prosecutor: Ong Ye Kung

 

https://www.channelnewsasia.com/singapore/cop-report-workers-party-pritam-singh-faisal-manap-ong-ye-kung-2494431

 

so far parliament diam diam on ah ken.

 

so who did more harm to singapore with their mouths, ah ken or ah khan??????

 

Bus interchange Covid-19 clusters likely to be workplace transmission: Kenneth Mak

https://www.straitstimes.com/singapore/bus-interchange-covid-19-clusters-likely-to-be-workplace-transmission-kenneth-mak

 

limpeh me use my pigu think also know bus interchange clusters will spread to public by oct one.

 

Edited February 13, 2022 by socrates469bc

[Bigbird]

On 2/11/2022 at 9:18 PM, socrates469bc said:

 

for smlj build so many mrt stations when many areas can be better served by bas?????

 

 

On the surface, these lines are for low ses shitzens to travel.

 

But most will not know the secondary plans for these crazy spending!  

 

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