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Singapore GST rise to 9%

  • Nov 12, 2019 | Richard Asquith

The Singaporean government has confirmed that it is looking to raise its Goods and Services Tax (GST) rate from 7% to 9% sometime between 2021 and 2025.

The increase is needed to help meet the rising social service costs of an ageing population.

The city-state plans to provide support measures to help the poorest cope with the increase in the consumption tax. This would include a permanent 'GST Voucher' scheme to give discounts on certain basic foodstuffs. 

This type of targeted welfare support is viewed as a more effective use of public funding. It is preferential to granting blanket reduced rates on essentials which subsidise the well-off, too. It replicates a similar Consumption Tax discount scheme operated by Japan following this year’s rise in its rate from 8% to 10%. The scheme was only available through small stores, thus helping to boost their businesses at the same time.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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