Singapore commits to raising GST in 2023 amid inflation

Income tax also headed higher as aging population, COVID hit public finances

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Singaporeans will have to pay more when they shop, with the GST set to rise to 8% next year and 9% in 2024. © AP

KENTARO IWAMOTO, Nikkei staff writer

SINGAPORE -- Singapore will raise its goods and services tax next year, the government announced on Friday, as it moves to strengthen its finances after heavy spending on pandemic-related measures.

The plan to lift the current 7% rate to 8% in January 2023, and then 9% in January 2024, was included in the draft budget for the fiscal year starting in April -- and comes at a time when inflation is sweeping the economy.

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