SINGAPORE: The Singapore Democratic Party (SDP) has called on the government to reduce the Goods and Services Tax (GST) from 9 per cent back to 7 per cent, citing global economic uncertainty stemming from new U.S. tariffs that could impact Singaporeans. The appeal comes as concerns grow over the possible knock-on effects of escalating global trade tensions that could potentially disrupt Singapore’s international trade flows.
In a statement released on Wednesday evening (9 Apr), the opposition party said cutting the GST would “go a long way to help Singaporeans cope with the effects of rising costs” and also serve to “boost domestic consumption and keep the cost of living from rising further.”
Beyond the GST cut, the SDP has also called for the government to roll back several price increases made in recent years, advocating for the reinstatement of fees to pre-COVID levels. The party asserted that water rates, public transport fares, and Electronic Road Pricing (ERP) fees are areas where cost reductions can immediately ease financial pressures on Singaporean families.
Positioning this call as part of its longstanding appeal to alleviate the financial burdens everyday Singaporeans grapple with, SDP said the proposed measures are the “first of a series of actions to restructure our economy to level up society and narrow income and wealth inequality”.
SDP added, “Singapore will be able to be resolute and united in holding its own in this troubled world only when the people who call this country home are adequately and meaningfully supported.”
The GST rate in Singapore remained at 7 per cent from 2007 until 2022, when the Government cited the need to support Singapore’s ageing population and expanding healthcare demands as it announced a two-step GST hike. The GST was progressively raised to 9 per cent over two years, despite concern over the impact on Singaporeans who are already facing rising inflation and the cost-of-living squeeze.