PM Lee Hints That Budget 2022 Will Include Announcement of GST Hike

If you’re one who chose to stay at home with a warm cuppa and watch the news (maybe to get a glimpse of the fireworks) during the last hour of 2021, you may have been rewarded (or not) with some important bits of information.

It was long time coming but last evening, PM Lee Hsien Loong in this New Year’s Message hinted at the Goods and Service Tax (GST) hike from seven to nine percent.

Dear reader, I know you are concerned but do not panic. More details will be addressed in the SG Budget 2022 to be unveiled on 18 February, for now let’s hear what else PM Lee has to say.

Why increase GST? What have we done to deserve this?

While this new is not new—it was first mentioned in 2018—it was definitely unexpected considering the uncertainly engulfing the nation what with all the disruptions brought on by the COVID-19 virus.

It was initially postponed to 2022-2025 due to the pandemic but it could not be put off for too long. With the economy picking up despite the arrival of the Omicron variant, 2022 is as good a time as any for the implementation of the GST hike.

With predictions for a better economic outlook in 2022, more resources are needed for the country to move forward in terms of healthcare, infrastructure as well as to cater to the needs of an expanding ageing population.

This is the primary reason for the GST hike—to give everyone a stake in contributing to our nation’s progress.

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Lower income groups to expect support schemes

Granted, the enforcement of the GST hike may leave lower income groups throwing their hands up in despair or berating the Singapore gahmen for leaving them in the lurch.

Hold up, everybody and put down those pitch forks!

‘OHANA’ means nobody get left behind. Our Singapore Government has yet to implement a policy that outrightly puts marginalised groups at a disadvantage.

GST from publicly subsidised education and healthcare will continue to be absorbed by the government.

Lower- and middle- income groups can expect to receive support through the permanent GST voucher scheme which will be enhanced when the GST hike takes effect .

To know more about this, watch this highly unpopular video to the end:

Better Economic outlook expected to buffer impact of GST Hike

“Better economic outlook?! ” Hasn’t the government been saying that for the past 3 years…?

Yes, reader, I understand that it is frustrating when we are bombarded with news of increasing statistic in COVID-19 patients daily but there is light at the end of the tunnel.

With almost all Singaporeans fully vaccinated, more than a third of the population having received their booster shots and programmes in place to vaccinate younger school going children between five to 11 years old, the situation seems to be improving.

More businesses are slated to resume operations and cross-country borders will gradually open up as well.

One may finally expect to find themselves better placed financially to take on the challenge of an increase in GST.

Other issues addressed in the New Year’s Message was to acknowledge the resilience shown by Singaporeans in the face of this unprecedented uncertainty, embracing differences at the workplace by allowing Muslim healthcare staff to don their tudungs and expecting more growth and development in creating a cleaner and greener environment for future generations.

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Featured Image: Youtube (Prime Minister’s Office, Singapore)