There will be no need for further increases in goods and services tax (GST) up to 2030, Deputy Prime Minister and Finance Minister Lawrence Wong said on Feb 28.
Wrapping up the debate on his Budget statement in Parliament, he said: "As of now up to 2030, we are in a sound position." He was responding to a question by Progress Singapore Party NonConstituency MP Hazel Poa, who asked if there would be a need to raise GST from now until 2030.
To this, DPM Wong said the 2 percentage point GST hike - from 7 per cent to 8 per cent on Jan 1, 2023, and to 9 per cent on Jan 1, 2024 - is meant to close the gap between revenue and expenditure until 2030.
"We have closed the funding gap up to 2030. The GST increase that we announced was intended for this, so we are okay up to 2030. We do not need further GST increases up to 2030," he said.
The Government has said the revenue from the increase in GST will go towards meeting Singapore's medium-term needs, such as in healthcare and social spending.
In an occasional paper on medium-term fiscal projections published in February 2023, the Ministry of Finance (MOF) projected that government spending would rise to about 19 per cent to 20 per cent of gross domestic product in the 2026 to 2030 financial years, and may exceed 20 per cent of GDP by FY2030.
To close this funding gap, moves were made at both Budget 2022 and Budget 2023 to strengthen the Government's revenue position so that rising expenditure can be balanced by total revenue in the coming years, DPM Wong said previously.
In Parliament on Feb 28, he said MOF will continue to update its projections of Singapore's mediumterm fiscal needs on a rolling basis.
He added: "So, post-2030, we will have to see what the picture is.
هذه القصة مأخوذة من طبعة February 29, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة February 29, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
FURIOUS FURY BLOODIED IN SAUDI
Tyson’s father hurt after headbutting Usyk’s team member ahead of heavyweight bout
Celtics 'figure' a way out against depleted Cavs
The Boston Celtics were not \"perfect\" but they still fought off the short-handed Cleveland Cavaliers to take a stranglehold in their National Basketball Association (NBA) semi-final play-offs on May 13, as the Oklahoma City Thunder levelled their series with the Dallas Mavericks.
COMING UP BIG FOR NYJC
Renfred plays no small role as Nanyang beat HCI to retain boys’ A Div volleyball crown
UNBEATEN PACIFIC VAMPIRE UNVEILS SCARY WARNING
Trainer Ong’s latest find leaves nothing to imagination, baring fangs in dazzling hitout
Nearly 2 in 3 Singapore workers ready to relocate abroad
Survey shows 72% of them are professionals below age 30; Australia most popular location
Life insurance sales in Singapore surge 32.2% to $1.37 billion in Ql
It is the industry’s strongest performance since 2020; LIA says outlook remains bright
GameStop shares soar on resurfacing of Roaring Kitty’
Post by Keith Gill, who drove meme-stock mania of 2021, attracts more than 12m views
Fraud concerns raise red flags for India’s booming tiny IPOs
A string of accounting frauds unearthed by India's securities regulator in May poses another risk to the blistering rally in shares of tiny businesses.
Retail traders sitting out Bitcoin rally
Latest revival more an institutional affair propelled by birth of Bitcoin ETFs in the US
Man with most number of charges forfeits 180 million in assets seize
Vang Shuiming jailed after pleading guilty; he will be deported after serving sentence