WP MP Louis Chua (Sengkang GRC) has called the move to increase the Goods and Services Tax “disappointing.”
The Goods and Services Tax (Amendment) Bill was passed in Parliament on Monday (Nov 7), despite dissent from the Workers’ Party MPS as well as the Non-Constituency MPs from the Progress Singapore Party.
In effect, the GST will go up from 7 per cent to 8 per cent from Jan 1, 2023, and from 8 per cent to 9 per cent from Jan 1, 2024.
The WP has long been opposed to the GST increase, with various MPs outlining alternatives to raising the tax.
The party has argued that the timing of the hike would be burdensome to Singaporeans, given recent inflation rates, higher costs of living, and global uncertainties.
Louis Chua called the move “disappointing” in his speech, in which he adds that while the WP acknowledges raising the GST is to address growing expenditure needs, he reiterated alternative ways to raise revenues.
Mr Chua said that due to the current situation, “the only responsible approach” would be to not push through with the hike without giving serious thought to better alternatives.
He pointed out that in 2019, when the decision to raise the GST to 9 per cent was mooted, the situation was completely different.
“There was no Covid. Commodity prices are half of what they are today. Inflation rates are 1/10th of what they are today,” the MP said, adding that the WP “has consistently made clear our view that the GST hike is not necessary, and that there are ways to raise recurrent revenue without resorting to an increase in GST.”
“Do we really want to fan the flames of inflation, and contribute an additional unnecessary one percentage point increase in the cost of living?,” he asked in his speech.
“Are we contributing to inflationary pressures? I am not much of a football person, but when your team is five-nil down, does it make sense to respond by scoring an own goal?”
MP Louis Chua -Are we contributing to inflationary pressures? I am not much of a football person, but when your team is five-nil down, does it make sense to respond by scoring an own goal?
— The Workers' Party (@wpsg) November 7, 2022
Mr Chua’s speech may be viewed in full here.
But given the country’s fiscal position, Mr Chua acknowledged that the two support packages Deputy Prime Minister Lawrence Wong had announced so far as “the right thing to do.”
DPM Wong said in Parliament on Monday that an additional S$1.4 billion will be added to the Assurance Package to help households deal with the GST hike.
/TISG
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