Budget 2023: Gov’t has ‘right tools’ to manage GST increase

ADDX said the government’s tax hike will not be deferred.

The government is prepared to deal with the economic challenges at the same time, the tax hike it increased because of its grants and cash assistance, said ADDX, a private market exchange. 

When Deputy Prime Minister Lawrence Wong revealed this year’s budget, the government outlined support for industries and individuals affected by the pandemic and inflation.

“If the economic situation proves challenging, the government has tools other than deferring the GST increase to manage it,” said Cheryl Chan, senior vice president for capital markets at ADDX.

The government said it does not expect to spend more reserves in this fiscal year. Also, the government plans to increase GST from 7% to 9% over two years with no signal that it will defer the tax hike.