The much dreaded 1% GST hike is finally upon us. On 1 January 2023, Singapore’s Goods and Service Tax was raised from 7% to 8%. The increase in GST was first announced in 2018 and was originally expected to take place in 2021. It was subsequently postponed due to the economic outlook following the COVID-19 pandemic. This GST hike is part of a two-stage increase in the GST rate in Singapore. The GST rate is scheduled to further increase to a total of 9% in 2024. The S$6 Billion Assurance Package, first announced by the Singapore government in 2020, was implemented to help cushion the impact of this GST hike for Singaporean consumers. A series of GST and CDC vouchers will be given to Singaporeans over five years to offset the increase in prices as a result of the GST rate hike.
