Singapore is said to be increasing their taxes as government spending on social services and investments continue to grow, stated Prime Minister Lee Hsien Loong on Sunday the 19th of November.
At the People’s Action Party (PAP) annual convention, Finance Minister, Heng Swee Keat has said that “raising taxes is not a matter of whether, but when”.
The spending for Singapore’s infrastructure, social safety nets and economy are all imperative, and are a vote of confidence in the future of the country according to the PAP secretary-general, Lee.
The Prime Minister has stated that both investments and social spending are costly and so, the government must ensure that it can afford them.
An increase in the Goods and Services Tax (GST) could be an idea according to economists. In 2007, it was raised by two percentage points to 7%.
Lee has also said that plans and strategies are in place, such as with the Industry Transformation Maps. He reiterated that both employers and unions will need to work together with the government.