Today, Singapore Finance Minister Heng Swee Keat confirmed that the Government will be raising the Goods and Services Tax (GST) by two percentage points sometime in the period from 2021 to 2025.
He added that the Government will ensure that the overall system of taxes and transfers remains “fair and progressive”, and will continue to absorb GST on publicly-subsidised education and healthcare.
The Government will also provide more help to lower-income households and the elderly by enhancing the permanent GST Voucher scheme.
Mr Heng added that “despite the need to raise revenues in the future, the Government is committed to keeping the overall tax burden low”, and that the GST rate is “not high by international standards”.
He explained that a competitive tax regime will ultimately help Singapore attract and retain investments and talent, which in turn helps to bring in good jobs for Singaporeans.
Alcohol Duty-Free Concession Tightened For Travellers
GST import relief for travellers will also be tightened from tomorrow (19 Feb), and alcohol duty-free concession tightened from 1 Apr.
Mr Heng shared that he will tighten the GST import relief for travellers in response to the rise of international travel.
Here are some of the changes that will be implemented from tomorrow:
- The value of goods bought overseas that can enjoy GST relief will be reduced from $150 to $100 for travellers who spend less than 48 hours outside Singapore.
- Similarly, these travellers must pay GST on overseas goods valued at $500 or more, with the current limit being $600.
- From 1 Apr, the alcohol duty-free concession for travellers will also be tightened from 3 litres to 2 litres.