WHAT IS GST CHARGEABLE?

Mr Chee laid out the categories of government fees that will be subject to GST.

The first, which makes up the vast majority, comprises fees paid for services provided by the government. Examples include the rental of public sports facilities, which are already levied with GST currently.

“There is no change in the treatment of these fees,” he said.

Another category includes fees that are not charged with GST now but should be taxed moving forward based on the government’s “clarified policy intent”.

These include fees for examinations that individuals must take before being issued a licence, which some agencies are currently not charging GST. Other examples include inspection fees prior to the licensing and conduct of certain business operations.

Overall, it is estimated that there are “more than 100” of such examination and inspection-related fees.

Mr Chee said the government will help to “minimise the impact” by absorbing the GST on these fees in the first instance and impose a freeze on these fees until end-2025.

MOF has also “separately asked the agencies involved to review their fees and charges, and to consider ways where they can streamline processes or reduce costs”.

“We will work closely with agencies on this to review if the above-mentioned fees may be reduced or even removed,” the minister said.

“If there are unavoidable cost increases, then agencies would have to raise their fees. But they will do so only after end-2025 and will ensure that any increases are phased in gradually, taking into consideration the impact on affected stakeholders.”

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