Previously government officials announced that there will be a 2% increase from 7% GST somewhere between 2021 to 2025.
Deputy Prime Minister and Minister for Finance Heng Swee Keat said in a speech that they will support Singaporeans in the ongoing Corona Virus Outbreak (COVID-19).
He said: “After reviewing our revenue and expenditure projections and considering the current state of the economy, I have decided that the GST increase will not take effect in 2021. In other words, the GST rate will remain at 7 per cent in 2021.”
By 2025…
Although GST is not going to increase in 2021, it is still happening by 2025. Heng said that:
“We still require recurrent sources of revenue to fund our recurrent spending needs in the medium term”
He added that the government will assess the appropriate time before increasing the GST.