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No need to raise GST in Singapore until 2030: DPM Lawrence Wong

Wong said that the GST hikes in Singapore in 2023 and 2024 were sufficient to close funding gaps between government revenue and expenditure up to 2030.

GST or Goods and Services Tax concept with a stack of coin and Singapore Dollar at the background
Singapore will not need to raise the Goods and Services Tax (GST) until 2030, said Deputy Prime Minister Lawrence Wong. (PHOTO: Getty) (ThamKC via Getty Images)

SINGAPORE — There will be no need to increase the current Goods and Services Tax (GST) rate up to 2030, said Deputy Prime Minister (DPM) and Minister for Finance Lawrence Wong during a debate on Budget 2024 in parliament on Wednesday (28 February).

Wong was responding to Progress Singapore Party (PSP) and Non-Constituency Member of Parliament Hazel Poa, who had asked if there would be a need to raise the GST from now until 2030 based on the government's assessment and fiscal projections to "fund higher expenditures".

In response, Wong pointed out that the GST hikes from seven per cent to eight per cent on 1 January 2023 and from eight per cent to nine per cent on 1 January 2024 were meant to close the funding gap between government revenue and expenditure until 2030.

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"We have closed the funding gap up to 2030. The GST increase that we announced was intended for this, so we are okay up to 2030. We do not need further GST increases up to 2030," said Wong.

Why the need to raise GST

The government had previously stated that revenue from the increase in GST rates would go towards meeting Singapore's medium-term needs, such as in healthcare.

"Post-2030, we'll have to see what the picture is. And beyond that, we'll have to see if indeed there is a funding gap, if there are increased expenditures, and whether or not additional revenues or tax changes are needed to close those funding gaps," said Wong.

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