Ask: NUS economists

Measuring the impact of GST hike and driver subsidy

Consumers need not necessarily bear the full brunt of the GST hike. ST PHOTO: KELVIN CHNG
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Q Who bears the brunt of a rise in goods and services tax (GST)? Who gains when the Government subsidises the income of cabbies?

A In mid-February, Finance Minister Heng Swee Keat said the Government would raise the rate of GST from 7 per cent to 9 per cent within four years. How will this rise affect Singapore consumers?

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