Give economy more time to manage costs before GST hike, economists say

The GST increase from 7 per cent to 9 per cent was first announced in 2018, and is meant to help Singapore deal with rising recurrent spending needs. ST PHOTO: KUA CHEE SIONG
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SINGAPORE - Singapore’s plan to increase its goods and services tax (GST) could kick in as soon as July 1, if the approach taken with the previous GST rate hike in 2007 is a guide.

However, in view of global inflation pressures and the uneven economic recovery, some observers say raising rates at a later date will give the economy more time to adjust to the cost pressures.

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