'We do not intend to cut the GST,' he said, when asked if there were such plans in the upcoming Budget which will be unveiled on Jan 22.

He indicated that this would be a blunt tool which would benefit the rich more, as the top 40 per cent of income earners here pay more than 75 per cent of GST collected each year.

This revenue would also be lost to Government, preventing it from spending more on other help schemes, he explained.

Instead, he prefers more targeted assistance: putting money in the pockets of low- and middle-income households.

'If you cut (GST) for everyone, it means more butter for some, more cream for some. I'd rather give even more butter to those who need it the most,' he said.

Read the full story in Saturday's edition of The Straits Times.