PM Lee: GST to be raised to 7%

After all the work to make one-cent coins redundant, they've made themselves redundant by putting them back into circulation, and negating the Progress Package in the process.


GST to be raised to 7%: PM Lee
13 November 2006 1832 hrs (SST) 1032 hrs (GMT)

SINGAPORE: The Goods and Services Tax will be increased to 7 percent, up from 5 percent presently - this was announced by Prime Minister Lee Hsien Loong in Parliament on Monday.

Mr Lee said more details will be given in next year's Budget Speech which has been scheduled for 15 February.

The Prime Minister made the announcement when responding to the issues raised by MPs over 4 days of debate - among them the widening income gap in Singapore as a result of globalisation.

Stressing that globalisation is here to stay, and Singaporeans will have to deal with its impact, Mr Lee said this is something that could strain the country's social compact, and this is why it is essential that there will be a whole set of measures to tilt playing field in favour of lower income group.

Adding that the GST increase will help finance enhanced social safety nets to help this group, Mr Lee said it was better to raise the GST when the economy is doing well. - CNA /dt

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