Tax hike is inevitable: PM Lee confirms

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PHOTO: REUTERS/Edgar Su

Prime Minister Lee Hsien Loong confirmed at the PAP Convention this morning that higher taxes are inevitable and stressed that it is a matter of when and not if taxes will be hiked.

Interestingly, when claims that the government would raise taxes erupted in 2015, a month before that year’s General Election, the Ministry of Finance (MOF) was quick to refute the claims, saying that they had no basis.

Posting a statement on the matter online, MOF reiterated Deputy Prime Minister Tharman Shanmugaratnam’s earlier assertion that increased spending planned for the rest of the decade is sufficiently provided for by measures that the Government had already taken.

Touching on the PAP government’s future priorities at the party conference today, PM Lee said that the government will explain the need and uses of the money in advance.

One of the major projects the government is expected to spend heavily on is the MRT network expansion project. More than $20 billion dollars will be plugged into this project which will take about 5 years to complete.

The new Terminal 5 at Changi Airport which also cost “tens of billions of dollars,” according to an earlier statement by Finance Minister Heng Swee Keat.

The government is expected to incur heavy costs as it invests in infrastructure, the economy, social services and healthcare as well. These costly investments are necessary, PM Lee said, adding that  “we have to make sure that we can afford them” by planning ahead:

“They are a vote of confidence in Singapore’s future
“Just as our forefathers saved and invested to build what we, the current generation, are enjoying today, so too we must plant trees so that our sons and daughters, and their sons and daughters, can enjoy the shade.”

PM Lee further asserted that there is enough revenue for this current term of government but that revenue must increase in the future as spending rises.

Thus, the government must “stretch our dollars, and make every dollar count,” PM Lee stressed.

114 COMMENTS

  1. They lock up Cpf, double the population to contribute tax, Cpf, levy also they still need more money .. Which means they are in very Desperate situation already… Oh my

  2. It’s been the same all these years, nothing new. Whatever freebies given, it will be taken back in time to come plus a few extra dollars. That’s why Singaporeans are stressed 24/7

  3. Every PAP term of government had resulted in mostly budget surplus, why can’t we use these surpluses to finance these projects? What happened to our surpluses in Temasek Holdings and GICs?

    Be truthful to the citizens of Singapore on the surpluses in our coffers. If we need extra taxes, I am sure we can go through together.

  4. guess who has to pay for mrt blunder? G is very smart to give us low income tax. It gives us a feel that we’re in control. But almost every necessity is directly or indirectly effected by cost of water, housing, petrol, etc. And the population increase. It’s the easiest way to increase tax revenue.

    • DT- low income tax? More like high income tax packaged to be seen as low income tax !!
      Ask them devils to do away with all the absurd taxes slapped on a product in the market and you will really be enjoying low income tax!!! Nahbeh!

  5. Now is probably the longest time that he had said that and he hopes we have forgotten and now is also the longest time till the next GE and he hopes we won’t remember he is saying this now.

  6. Petrol price have also quietly crept up. From $2.18/L to $2.21/L to $2.23/L in a short span of 1 month. All these also affects majority of people. Nowadays no need announcements anymore. Just increase

  7. Prata when consumed as food makes for an ideal breakfast for common Singaporeans. Prata which comes out from the mouth of our leaders as words, makes us the common Singaporeans puke.

  8. Hahaha so funny reading some of the comments as if they were surprise and disbelief PAP government will raise taxes!! So many broken election promises…. I’m surprise they still don’t come to their senses !

  9. 69.9% can no longer complaint anymore…they have decided and had given the mandate to PAP to fixed them and they will have to accept whatever shit that PAP do to we Singaporeans…starting with having our local PMETs losing more jobs to cheaper foreigners + our CPF money locked further by more new measures. PAP did not enslave us; we Singaporeans enslave ourselves to their bullying!

  10. I wonder… we have a new president (although selected and not elected)… the president’s primary job is to safeguard our reserves… now govt wants to raise income taxes (they have already raised taxes on so many things… what is the state of our reserves? Our CPF? Our GIC investments? What justifies continuing increase in already sky high costs in spore? Has the president looked at the books? Has she asked for the books? Her first job on being president is to understand the state of our reserves and then tell citizens that everything is in good order… and now if the govt wants to raise income taxes after raising so many other taxes already… is the president satisfied that this is warranted? If our national reserves are well invested with good returns then why must everything go up for us ordinary citizens? Please stop focusing on cutting ribbons and hosting dinners… report to Singaporeans what is the state of our national reserves? Our CPF? Then justify why he govt is raising everything…..

    • These bunch of liars must be trying to find other means and ways to get the money for essential things like fixing the mrt probs…and at the same time not loose their million dollar salaries…our reserves? Ha…god knows how much has the leech siphon…so nw need to raise tax to cover it back

  11. More business will folded, already merely surviving and no customers, look around SG and the ordinary working class no money and the cost of living unbearable for these folks. Karma will befallen the evils in power.

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