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Politics, Business, Monthly Spotlight

Pre-Budget Speculation: Will We See Tax Hikes?

Raising GST Most Painful for Two in Five Singaporeans

Speculation has been brewing that taxes will be raised following February’s Budget given PM Lee’s earlier announcement in November 2017 that tax hikes are inevitable as government expenditure increases.

There are various ways the Government could increase tax revenue, with GST the odds on favourite which given it was the second-highest contributor to tax collection in 2016.

More than two in five Singaporeans (41%) however, would feel the most pain personally if GST was to increase. The introduction of new taxes such as e-commerce tax (4%), sugar tax (4%), carbon tax (3%), and estate tax (re-introduction, 3%) are seen as less painful.

Singaporeans feel that amongst the various groups that can be taxed, it would be ‘very acceptable to raise taxes’ amongst high income earners (41%), polluters (40%) and international companies (33%). Only 7% feel that all income earners ought to be subjected to tax raises.