Singapore increase in taxes: When and what would it be?
The Singaporean Government could raise revenue to fund the country’s expenditure by increasing the goods and services tax (GST). However, economists are divided in opinion on when the increase in GST would occur.
According to sources, the GST is the 2nd largest generator of government revenue, after personal income and corporate tax. The taxman may be contemplating a further increase in “sin” taxes or having duties on digital goods and services.
This is following statements from Prime Minister Lee Hsien Loong that increasing taxes will be inevitable as the government make investments into infrastructure, the economy, social services and safety nets. The PM stated at the People’s Action Party (PAP) convention on Sunday the 19th of November, that an ageing population has resulted in an increase in demand for healthcare services.
With regards to the healthcare sector, it currently concerns a multitude of advancements such as creating more hospitals and care centres, system restructure as well as improvements to MediShield coverage with ElderShield and MediShield Life.