GST increase to 8% in Singapore

There has been a lot of concern in Singapore about the recent 1% increase in the goods and services tax (GST) rate, which has risen from 7% to 8%. While it may seem like a small increase, many people are concerned about the impact it will have on consumer prices. The issue is not just the 1% increase, but the fact that many products have seen price increases of 5% to 20% as a result. This means that things like chicken rice, which cost $4.50 last year, may now cost $5. This is a much larger increase than the 1% GST increase would suggest.

Some people have argued that the government should do more to regulate businesses and prevent them from using the GST increase as an excuse to hike up their prices. There are also concerns that the gradual increase from 7% to 8% and then 9% in 2024 may result in even higher prices, as businesses may round up prices more frequently.

Overall, it’s clear that the 1% GST increase has had a much larger impact on consumer prices than one might expect.