Singapore is implementing a sales tax hike to 9 percent on January 1, 2024. This is the first phase of a two-stage increase. The initiative is to address financial needs amidst expected surges in social spending due to an aging population.
“Deferring the GST increase will only store up more problems for the future, leaving us with less resources to take care of our growing fiscal needs,” said Deputy Prime Minister Lawrence Wong back in August last year.
Opposition lawmakers are urging a delay citing rising living costs. The government argues the hike is necessary for fiscal preparation as a quarter of the population is expected to be 65 and older by 2030.
Several retailers, including the Swedish retailer IKEA, have announced that they will temporarily absorb the one percent tax hike. However, IKEA did not specify when this initiative would come to an end.
Source: bignewsnetwork.com
