Singaporean says spend $100, and only $1 GST increase, “It’s not end of the world”

SINGAPORE: With the GST raised from eight per cent to nine per cent as of Jan 1, 2024, Singapore is adjusting to yet another increase in the tax. With this in mind, an online user took to social media to “put things into perspective” by sharing his take on the tax increase.

Online user JereMe Lim took to the Complaint Singapore group on Tuesday (Jan 2) to share that “GST (is) up by 1%, not 9%,” he wrote. “To put (things) into perspective, if you spend $100, it’s just (a) $1 increase compared to last year. It’s not end of the world.”

The post, decorated with an avatar of the online user happily smelling a flower, elicited a response from many who shared their thoughts on the growing costs people need to pay.

Some shared their own arguments, while others pointed out factors that contribute to the one per cent increment feeling like more to many people.

“By logic (that) is correct,” said one, “but many hawkers, restaurants, bus fees, etc. up more than 1%. They can up 13% and more. That is why people complain.”

Another wrote, “Yes you are right. However, many business owner are not taking that the literally way. Petrol increase, transportation increase, tax increase, hence the raw produce/product will increase, which affect vendors, like hawkers, marts, restaurants and their increment will never be only (a) ‘1%’ increment. Knn my downstair wanton mee from $3 to $4, that’s 30% increment.

What happened to the ‘1%’?”

Still, a third shared, “For those unfamiliar with how GST and price hikes operate, it’s essential to note that the GST has increased across all commodities.

This applies not only to the end product but also encompasses everything from utilities and supplies to the raw materials of the final goods.

Consequently, bakeries will incur additional costs on utility bills, plastic and paper bag supplies, plain flour, butter, and sugar. Therefore, the impact on the final consumer extends beyond a mere 1% increase.”

During the 2022 budget, Singapore announced its plan to increase the GST in two stages. The first stage, in 2023, saw the GST rise from seven per cent to eight per cent.

As for the second stage, which took place on Jan 1, 2024, the tax rose from eight per cent to nine per cent.