Fair and inclusive approach

Our forefathers' prudence and restraint built up the reserves that have seen us through Covid-19. We must do the same for future generations, who will surely encounter many more crises of their own.

It is easy to push the responsibility to the higher-income earners. But a tax system where the burden is borne by just a small group, and the rest piggyback on their contributions, cannot be sustained.

Our system is based on collective responsibility. Everyone contributes something, according to their means. Similarly, everyone benefits from the state's spending, with the more vulnerable benefiting more. This is a fair and inclusive approach.

The GST is part of this tax system. Raising GST is difficult and unpopular. But it is necessary to put our public finances on a sounder basis, and provide for our growing healthcare needs.

The enhanced Assurance Package will cushion the impact of the GST increase for all Singaporeans, and the permanent GST Voucher Scheme will provide continuing support for lower to middle-income groups, even beyond the transition.