The bulk of the GST burden is borne by tourists and foreigners living in Singapore, as well as the top 20% of resident households, Senior Minister of State for Finance, Mr Chee Hong Tat said in Parliament.
This is after netting off refunds under the Tourist Refund Scheme ($200 million a year) and after netting off GST Vouchers of over $1 billion provided annually to Singaporean households.
Of the net $5.7 billion GST collected, tourists and foreigners living in Singapore accounted for 50% of it. The top 20% of resident households account for close to 20%.
The bulk of the GST, as stated earlier, is borne by tourists, foreigners living in Singapore and the top 20% of households here.
Delay GST hike? Your wish is granted!
The $6 billion Assurance Package is now $8 billion, taking into account the elevated inflation situation.
For those who ask the Government to delay the GST rate increase, the Assurance Package in effect does precisely that, for the majority of households.
GST is permanent. The GST Voucher Scheme is also permanent.
Multi-tiered GST System
It is one that is tiered by income levels, with lower-income households paying a much lower effective GST rate than higher-income households.
Even after the hike, the effective GST rate for the bottom 30% of households remains unchanged at below 3%. This means that the GST increase will not negatively impact them.