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

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?

Please or to continue reading the full article.

Get unlimited access to all stories at $0.99/month
  • Latest headlines and exclusive stories
  • In-depth analyses and award-winning multimedia content
  • Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months*

*Terms and conditions apply.