The government has announced that the Goods and Service Tax rate will be lowered to 1 percent from 2021, following the results of test balloon surveys.
Instead of a GST hike to 9 percent, Singaporeans will see a reduction in the present-day 7 percent GST rate.
The change in GST rate will take effect from today (1 Apr).
Commenting on the GST rate reduction, Finance Minister Jin Heng said:
“Timelines and suspicions aside, seeing how many Singaporeans kee chiu to object the GST hike, we’ve decided to be benevolent. The Ministry is now working on plans to remove stamp duty and taxes on water and electricity.”
The government had announced during Budget 2018 last month that GST would be raised to 9 percent sometime between 2021 to 2025, but has apparently changed its mind.
GST rate reduction aside, Leader of the House Grace Fu has apologised to Sylvia Lim for demanding that the Workers’ Party MP apologise for raising her “test balloons” suspicion in parliament.
Commenting on the lowering of GST to 1 percent, Reform Party chief Kenneth Jeyaretnam said:
And, dear readers, Happy April Fools’ Day.