[Bigiron]

Chee Hong Tat defends GST hike as crucial for Singapore’s future despite strong fiscal surplus 

Second Minister for Finance Chee Hong Tat has defended Singapore’s GST hike from 7% to 9%, calling it a difficult but necessary move to meet the needs of an ageing society and a turbulent global economy, even amid stronger-than-expected national revenue.

https://www.theonlinecitizen.com/2025/04...l-surplus/

[Bigiron]

The article highlights **Chee Hong Tat's** defense of Singapore's **GST hike (from 7% to 9%)**, even though the government is running a **"stronger-than-expected fiscal surplus"**. Here are some of the **bullshit (questionable or weak) arguments** he makes in the article:  

### **1. "Necessary for an ageing society & turbulent global economy"**  
   - **Bullshit Point:** If Singapore has a **strong fiscal surplus**, why is the GST hike still "necessary"?  
   - The government could have **delayed the hike** or used existing reserves instead of further burdening citizens, especially when inflation is already high.  

### **2. "Difficult but necessary move"**  
   - **Bullshit Point:** If it's so difficult, why not explore **alternative revenue sources** (e.g., higher taxes on the wealthy, more taxes on luxury goods, or reducing excessive spending in certain areas)?  
   - GST is a **regressive tax**—it hurts the poor and middle class more than the rich.  

### **3. Ignoring the fiscal surplus**  
   - **Bullshit Point:** The article mentions **"stronger-than-expected national revenue"**, yet Chee still insists the GST hike is unavoidable.  
   - This suggests the government is **prioritizing fiscal prudence over public welfare**, even when they don’t urgently need the money.  

### **4. Lack of transparency on spending**  
   - **Bullshit Point:** The government claims the GST hike is for "future needs," but there’s **no clear breakdown** of how the extra revenue will directly help Singaporeans.  
   - Past GST hikes have often been followed by **increased spending on non-essential projects** (e.g., megastructures, high salaries for ministers).  

### **5. Downplaying the impact on cost of living**  
   - **Bullshit Point:** The GST hike **directly increases prices** for basic goods and services, worsening inflation.  
   - While there are **vouchers and rebates**, they are temporary fixes—**permanent tax hikes** have a long-term impact.  

### **Conclusion:**  
Chee Hong Tat’s justification seems **contradictory**—if Singapore has a **strong surplus**, why impose more taxes on the people? The arguments sound more like **excuses to secure more revenue** rather than a genuine need.

[Bigiron]

Here are **alternative solutions** the Singapore government could have considered instead of raising GST—many of which would be **fairer, more progressive, and less burdensome** on average citizens:  

---

### **1. Increase Taxes on the Wealthy & High-Income Earners**  
   - **Wealth Tax**: Singapore has **no wealth tax**, meaning billionaires and multimillionaires pay little compared to their assets.  
   - **Higher Top-Tier Income Tax**: The richest pay **24% income tax** (vs. **45%+ in Scandinavia**). Even a modest increase could generate billions.  
   - **Capital Gains Tax**: Many countries tax stock/asset profits—Singapore does **not**, benefiting the rich disproportionately.  

**Why GST is worse?**  
→ A **janitor pays 9% GST on rice**, while a billionaire pays **0% on stock profits**.  

---

### **2. Tax Luxury Goods & Non-Essentials More**  
   - **Luxury cars, yachts, private jets, high-end properties** could face **higher additional taxes** (like in the UK or France).  
   - **Sin Taxes**: Increase duties on alcohol, tobacco, and gambling (Singapore already does this, but could go further).  

**Why GST is worse?**  
→ A **9% GST on a BMW hurts the middle class**, but a **20% luxury surcharge** only affects the rich.  

---

### **3. Reduce Excessive Government Spending**  
   - **Ministers’ Salaries**: Singapore’s politicians are the **highest-paid in the world** (PM Lee Hsien Loong earns **S$2.2M/year**). Even a **10% cut** could save millions.  
   - **Megaprojects**: Do we really need **another billion-dollar MRT line** or **Changi Terminal 6** right now?  
   - **Reserves Usage**: Singapore has **S$1+ trillion in reserves**—why not use a small fraction instead of taxing the poor more?  

**Why GST is worse?**  
→ Instead of **trimming fat**, the government **squeezes the people**.  

---

### **4. Corporate Tax Reforms**  
   - **Close tax loopholes**: Some MNCs exploit Singapore’s tax treaties to pay **near-zero tax**.  
   - **Minimum Corporate Tax**: The OECD proposes a **15% global minimum tax**—Singapore could adopt this instead of letting companies like **Apple or Google** pay <5%.  

**Why GST is worse?**  
→ **Corporations get breaks**, while **hawkers pay more GST**.  

---

### **5. Expand Revenues from State Investments (GIC, Temasek, MAS)**  
   - Singapore’s sovereign funds (**GIC, Temasek**) make **billions in profits yearly**—why not allocate more to national spending?  
   - **Temasek’s portfolio is ~S$400B**—even a **1% dividend** could cover GST hike revenues.  

**Why GST is worse?**  
→ The government **prefers taxing citizens** over using investment gains.  

---

### **6. More Progressive Social Policies (Instead of GST Vouchers)**  
   - **GST vouchers** are temporary—why not **permanent exemptions** for essentials (food, healthcare, utilities)?  
   - **Targeted subsidies** for low-income groups (e.g., **education, transport, housing**).  

**Why GST is worse?**  
→ **Vouchers are a band-aid**, while **GST is a permanent wound**.  

---

### **Final Verdict: GST Hike is the LAZIEST Solution**  
The government **chose the easiest (but cruelest) option**—hitting the poor and middle class instead of:  
✔ **Taxing the rich**  
✔ **Cutting elite salaries**  
✔ **Taxing luxury & corporations fairly**  
✔ **Using reserves & investment profits**  

This is **not about "necessity"**—it’s about **political convenience**.

[Sentinel]

Raising taxes is never a good idea, and nothing can justify it

[red3]

This type of argument must bring out numbers ... Surplus Vs gst collection

[[[ForeverAlone]]]

Raising taxes is never a good idea, and nothing can justify it

Taxes on the Rich in SG actually not high , or else why got " money laundering case here "

[Blasterlord2]

So far, PAP could not explain their reasons for the hike in gst, except saying that it is critical for Spore's future.

But to raise it at a time when inflation is sky high and when there's ample surplus? Their defense is untenable.

[Scythian]

So far, PAP could not explain their reasons for the hike in gst, except saying that it is critical for Spore's future.

But to raise it at a time when inflation is sky high and when there's ample surplus? Their defense is untenable.

If it's crucial for Singapore's future then, raise GST higher to 19%

[Scythian]

Why raise GST to 9 % to further add pressures to the already higher costs of living?

It's badly timed as people just emerged from Covid19 pandemic and globally facing raising interest rates.

[Nico]

Every year since the inception of GST, the direct and indirect tax revenue forcasted and actual collected is always a huge different. For year 2024, it was off by a whopping 24%. This year 2025 will not be any different.

Unless the gov is losing big time in both temasek and Gic investments (which seems to be the case) or burning money indiscriminately and mindless expenditure, otherwise we can afford to slow down or halt GST hike, with the purportedly huge reserves. Not adding feul to fire.

I can only conclude either our reserves are dwindling with the insane losses and mindless spendings, or pap gov ignores the cries of its people.

One can argue gov gave CDC vouchers (which is our own money) to "help" during these time. In reality CDC vouchers only fan inflation further as we already know.

With increased consumption that drives up GBP growth, it will also means our ministers will be collecting huge bonuses for achieving the key KPI. Minister bonuses (as high as 10 or more) are not transparent and it is up to PM's discreetion to reward.

So what do citizens get? $300 voucher for you and if KPI is met , our ministers will be laughing to bank easily with a half a Million$ Bonus !

So who is helping who?

[Rainforest]

[RiseofAsia]

Chee Hong Tat defends GST hike as crucial for Singapore’s future despite strong fiscal surplus 

Second Minister for Finance Chee Hong Tat has defended Singapore’s GST hike from 7% to 9%, calling it a difficult but necessary move to meet the needs of an ageing society and a turbulent global economy, even amid stronger-than-expected national revenue.

https://www.theonlinecitizen.com/2025/04...l-surplus/

不懂易经真糟糕。
Solving today’s problem is more important than solving future problem lah.
The reasoning is rather weak.

[Alice Alicia]

CHT is getting delusional.
He has to see a mental doctor.