GST hike implemented with 'great care', opposition ignored facts to maximise votes: PM Wong

Permanent GST vouchers ensure less well-off Singaporeans pay less than headline rate, he says

- Lim Min Zhang

Great care was taken in implementing the goods and services tax (GST) hike so that Singaporeans who are less well off pay less than the 9 per cent rate, said Prime Minister Lawrence Wong.

He said on April 28 that the Government explained in Parliament "with data and the facts" why additional revenues were needed to take care of the rising number of seniors, and how support was enhanced in tandem to keep the system fair and progressive.

"The opposition had no counter to this in Parliament. But then when elections come, they conveniently choose to ignore all this," he said at his first Fullerton rally as prime minister.

"Why? Because, politically, they know it's to their advantage to make this an issue, to stir up unhappiness, just to maximise their votes."

The permanent GST vouchers ensure that lower- and middle-income Singaporeans pay less than the headline GST rate, PM Wong noted.

"Who pays the full rate? Three groups: foreigners, tourists and higher-income families," he said.

"The opposition wants these three groups to pay a lower rate. Would you? I wouldn't.

"I think it's fair and right for them to pay the full rate, but for lower- and middle-income Singaporeans, we protect you, we shield you... and that means you pay an effectively lower GST rate. That's how our GST system works."