Following the announcement of the possibility of bus and train fares increasing by up to 7 per cent next year, many Singaporeans have lashed out.
Another reason for their gripe is that the two fare hikes come in tandem with announcements that record amounts of tax have been collected in 2017 and 2018.
According to a report on the Singapore Business Review, tax revenue collected in FY 2018/19 climbed 4.4% to $52.4b from $50.2b in the previous fiscal year, according to the Inland Revenue Authority of Singapore (IRAS).
This represents 71.1% of the Singapore Government’s Operating Revenue and 10.6% of Gross Domestic Product (GDP).
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The fares could go up by 10 cents, the maximum increase that can be allowed under the current fare formula, a measure implemented from 2018 to the year 2022.
As the Public Transport Council (PTC) begins its annual fare review exercise, if the fare increases are approved, this would be the highest fare increase in recent years.
As per a Straits Times report, the PTC said that the largest contributing factor to the potential fare hike was the double-digit increase in energy prices, which rebounded 26.2 per cent in 2017, and 32.3 per cent in 2018.
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