Costs are rising but PAP will go ahead with the GST hike. Finance Minister Lawrence Wong spoke about inflation today and announced a $1.5 billion support package for Singaporeans. He believes it will help lower-income groups cope with tough times.
He is aware of the rising cost of living and how a GST hike will add to our worries. However, he said it is necessary. He thinks it is the best way to deal with our increase in spending needs, such as on healthcare and the ageing population.
“We have looked at all the different possibilities for raising revenue and we have made various revenue moves in the Budget… but they are still not enough and that’s why we have to raise the GST.”
Lawrence Wong promised to help Singaporeans by giving every household $100 utilities credit. In addition, there will be a $300 payout to GSTV-Cash recipients. Self-employed persons and firms will also receive some reliefs (below image from Yahoo).
In spite of the $1.5 billion support package, Lawrence Wong warned that energy and food prices will remain high. He said:
“We must expect price increases to continue in the coming months.”
Thanks. With the ever-increasing cost of living, will these payouts be enough? Today, we are buying significantly fewer items with a $50 note as compared to 5 years ago. A $10 note may not even be enough for a meal and a drink in the food court. We are already feeling the impact of inflation in our daily lives. What is going to happen when GST hits 9%?
If the government understands our worries (as they claimed), will they choose to increase GST? Why are countries like Australia and New Zealand cutting costs for citizens while we are doing otherwise? Has it occurred to PAP that it may not be wise to impose a hike?
Unfortunately with the PAP, whatever they want to make happen will happen whether we like it or not. Lawrence Wong said: We are all in this together. Sure, except they have fat paychecks and we do not. And that makes all the difference.