After announcing that the Goods and Services Tax (GST) will not be increased in the year 2021, Finance Minister Heng Swee Keat announced that the GST increase cannot be put off indefinitely.
In order to help Singaporeans cope with the ultimate increase, he announced a new S$6 billion Assurance Package when the GST rate is raised.
He added that the majority of Singaporean households will receive offsets to cover at least five years worth of additional GST expenses incurred. “Every adult Singaporean will receive a cash payout of $700 to $1,600”, said the DPM.
Additionally, those living in 1- to 3-room HDB flats will receive offsets equivalent to about 10 years worth of additional GST expenses incurred.
A permanent GST Voucher scheme aims to offset the GST for the lower half of retiree households, as well as for the upper half of retiree households. This permanent scheme will also offset about half of the GST for lower-income households with no elderly persons./TISG