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Singapore eyes tax hike as nations aim to refill COVID-hit coffers

Expert says 2022 is 'last window' for government to raise GST before elections

Singapore's Orchard Road shopping district: The government is looking to raise the 7% goods and services tax.   © Reuters

SINGAPORE -- Singapore's government is weighing a long-planned goods and services tax increase -- potentially setting an Asian example for countries looking to drum up revenue after the heavy spending of the COVID-19 pandemic.

With the economy beginning to recover, experts see a growing likelihood the city-state will soon follow through on a hike originally flagged in 2018. Prime Minister Lee Hsien Loong hinted as much in his recent New Year's message, when he said of the current 7% GST, "Now that our economy is emerging from COVID-19, we have to start moving on this."

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