We’re not exactly surprised that there’s an increase in GST – we’ve been seeing this in the news for years. Thankfully, this will only be taking place the next year: an increase from the current seven percent to eight percent in 2023, and up to nine percent in 2024.
But not to worry, Finance Minister Lawrence Wong has also announced that the Government will be helping Singaporeans during these trying times.
There’ll also be an Assurance Package, which was first mentioned in the 2020 Budget – it was said that Singaporeans will receive cash payouts over the next five years, helping us to offset the increase in GST. Today, Mr Wong added on to say that he will be providing a top-up of $640 million to the Package. This includes:
- A cash payout up to $1,600 for Singaporeans aged 21 and above for the next five years
- U-Save rebates – meaning, up to $570 for households who are eligible
- GST vouchers for seniors aged 55 and above (up to $900)
- MediSave top-ups for children aged 20 and under ($450)
- CDC vouchers – $200 for each Singaporean household in 2023 and 2024
By no means are we excited about the GST hike, but as Mr Wong said, the Government "will continue to absorb GST on publicly subsidised healthcare and education". They will also be covering the additional GST payable on Service and Conservancy Charges (S&CC) with $15 million in extra funding yearly, as well as government fees and charges for one year.
Read more: Singapore Budget 2022: What to expect