DPM Lawrence Wong: No Need for Additional GST Hikes in Singapore Until 2030

Deputy Prime Minister and Finance Minister Lawrence Wong assured Parliament on Feb. 28, 2024, that there will be no further increases to Singapore’s Goods and Services Tax (GST) until at least 2030. This announcement was made in response to NCMP Hazel Poa’s query on whether future GST hikes would be necessary to support rising expenditures.

Wong stated that, based on current fiscal assessments, additional GST hikes are unnecessary for the remainder of the decade. “We are in a sound position on income until 2030,” he affirmed, though he acknowledged that after 2030, the government will reassess for any potential funding needs.

Responding to Workers’ Party MP Jamus Lim’s question about whether the recent GST hike was timed appropriately or could have been postponed, Wong emphasized that while GST affects inflation, its impact is “one-off” rather than continuous. He added that inflationary spikes are not primarily driven by GST adjustments and that the Assurance Package is helping mitigate GST costs for lower-income groups, extending support for over five years for most Singaporeans.

Wong concluded that implementing the hike was necessary to maintain Singapore’s fiscal health, stating, “Let’s ensure that our fiscal system remains sound and that we have sufficient revenues to cover our spending.”