Singapore Budget 2020 – Goods and Services Tax (GST)

1. GST Rate

As announced in Budget 2018, the GST rate is planned to go up from 7% to 9% between year 2021 and 2025. This is necessary as the Minister foresee support in higher healthcare and other needs in the near future.

In Budget 2020, the Finance Minister had unveiled that the GST rate remains unchanged at 7% till year 2021. However, the increase cannot be put off indefinitely and is expected to increase to 9% sometime between year 2022 and 2025.

The Government will give ample time to all Singaporean before announcing the increase in GST rate and assures that the Singapore tax system and transfers will remain progressive. GST will continue to be absorbed on publicly-subsidised healthcare and education. In addition, assurance package will be introduced along with the increase of the GST rate.