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Govt has to 'start moving' on GST increase in Budget 2022, as economy emerges from Covid-19: PM Lee

Govt has to 'start moving' on GST increase in Budget 2022, as economy emerges from Covid-19: PM Lee

With Singapore's economy emerging from the Covid-19 pandemic, the Government has to "start moving" on the planned increase in the Goods and Services Tax (GST) from 7 per cent to 9 per cent, Prime Minister Lee Hsien Loong said on Friday (Dec 31). 

The Budget on Feb 18 — to be delivered by Finance Minister Lawrence Wong — will lay the basis for "sound and sustainable government finances for the next stage of Singapore’s development", Mr Lee said in his New Year message. 

The prime minister stated again that Singapore needs a vibrant economy to generate the resources it requires to realise its goals. The Government must also have reliable and enough revenues to carry out its social programmes.

In his message, Mr Lee also said that with Singapore's economy rebounding steadily, he expects 2022 to be a “time of transition” for the country as it further opens up international travel and reconnects with the rest of the world — if the Omicron coronavirus strain permits.

On Singapore's fight against the highly transmissible Covid-19 variant, Mr Lee reiterated that Singapore was in a stronger position than two years ago, with booster shots being rolled out and vaccinations under way for children below 12

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