BLAMING THE GOVERNMENT
In the face of cost-of-living concerns, the opposition has put blame on the GST (goods and services tax) increase, Mr Wong said, even though inflation was largely imported due to conflicts and wars that have disrupted global supply chains.
“Look around you. Countries everywhere experienced this too. It is not a Singapore phenomenon,” he said.
Singapore has dealt with the issue through sound monetary policies, he added.
“Inflation here has been coming down faster than in many other countries. Raising the GST was not easy. It was a very difficult decision to make. We thought very hard about it, but we did it because we needed the revenues to take care of all our seniors. And the number of seniors are growing very quickly,” he said.
The increase was accompanied by enhancements to permanent GST vouchers given to lower- and middle-income households, said Mr Wong.
Because of the vouchers, these groups effectively pay less than the headline rate of 9 per cent GST, which is paid instead by foreigners, tourists and higher-income families, said Mr Wong.
“The opposition wants them, these three groups, to pay a lower rate. Would you? I wouldn’t. I think it’s fair and right for them to pay the full rate,” he said.
“That’s how our GST system works. By doing this overall, we ensure a fair and progressive system, it is effective, it is sound.”
