GE2020: Govt should ‘make clear’ fiscal projections so public can assess need for GST hike, says WP’s Pritam Singh

• PAP’s Chan Chun Sing had asked how WP would pay for its proposals
• These include a proposal in WP’s manifesto not to raise the GST
• Mr Singh said Government should reveal its 10-year revenue and spending forecast
• This would help public assess if a GST hike is needed, he said

 

SINGAPORE — The Government should make clear its revenue and expenditure projections for the rest of the decade so that Singaporeans can properly assess whether a hike in the Goods and Services Tax (GST) is necessary, Workers’ Party (WP) chief Pritam Singh said on Friday (July 3).

He was making the point in response to a comment made by Mr Chan Chun Sing from the ruling People’s Action Party (PAP) during a dialogue session organised by Chinese-language newspaper Lianhe Zaobao on Thursday evening.

Mr Chan, who was Trade and Industry Minister before Parliament was dissolved, had asked how the WP plans to foot the bill for proposals in its manifesto, including its objection to an increase in the GST.

In 2018, the PAP government announced plans to increase the GST from the current 7 per cent to 9 per cent, sometime between 2022 and 2025.

Speaking to reporters during the walkabout with WP’s candidate for Punggol West Single Member Constituency (SMC), Ms Tan Chen Chen, Mr Singh said: “The hike is a jump from 7 per cent to 9 per cent and we believe that, number one, the Government has to make clear its revenue-expenditure projections for the rest of the decade before the public can actually make a good assessment of whether the hike is necessary.” 

He added that during a Parliamentary debate on the planned GST increase, WP Members of Parliament had also asked whether there were other possible sources of revenue that had been considered.

“Now I think there is a view out there where it is alleged that the WP wants to raid the reserves and so forth. But if we look back in 2006, how much of the Net Investment Returns Contribution (NIRC) did Singapore use? I think it was about S$2 billion at that point,” he said.

“Fast forward to today, in about 15 years, they are using about S$17 billion or S$18 billion dollars every year.”

The NIRC refers to investment returns on Singapore’s reserves. These returns supplement the annual budget and form the biggest contributor to Government revenue.

According to the Ministry of Finance, the NIRC is estimated to be S$17.2 billion for the 2019 financial year, equivalent to about 18 per cent of the Government budget.

Mr Singh added that introducing Temasek Holdings into the NIRC formula in 2016 had slowed the growth of the reserves.

“So what happens as society evolves? You have to look at ways of how you can support your people better and address issues that are very central to them, like the cost of living, for example,” he said. 

“So I think those were some of the points that were brought up previously already in Parliament. Even before we talk about what Mr Chan said yesterday, I think these are some of the issues for Singaporeans to think about.”

PUBLIC HOUSING AFFORDABILITY

In its third e-rally of the General Election, the WP said on Friday that while the coronavirus has caused great anxiety for Singaporeans, other issues such as the cost of public housing should not be forgotten.

This is particularly important for young couples, as it could lead to them settling down at a much later age, said the party. This, in turn, could have a knock-on effect on the couple’s ability to conceive or desire to have children — accentuating the country’s low birth rate.

Ms Tan, who was one of the speakers, pointed out that the price of Housing and Development Board (HDB) flats have steeply increased in the past 35 years.

Citing a four-room HDB flat in Yishun as an example, the 38-year-old said it would have cost around S$60,000 about 35 years ago. A flat of a similar layout now, she added, would not only cost five times more at around S$300,000, but would be smaller in size.

“Wasn’t the purpose of HDB flats meant to reduce the pressures of Singaporeans?” said Ms Tan. “However, housing loans today have caused Singaporeans to be more stressed.”

To help alleviate the cost of public housing, Ms Tan said that the WP has three proposals:

• Pegging HDB prices in non-mature estates to the median income of Singaporeans

• Allowing lower income Singaporeans to apply for discounts on two-and three-room HDB flats

• Getting HDB to provide the cost breakdown for the price of a flat

Other topics raised during the e-rally included the need to tackle both climate change and income inequality, and for parliamentary proceedings to be broadcast live. 

Aljunied GRC candidate Gerald Giam, a former non-constituency Member of Parliament (NCMP), also reiterated that the party was against the NCMP scheme — a point the party has raised several times in the past few days. 

On why Singaporeans should consider voting for the WP, Marine Parade GRC candidate Nathaniel Koh likened it to choosing a telecommunications provider. 

“With more choices you get two things: Lower cost, better service,” said Mr Koh. “The same thing happens when you have more Workers’ Party MPs in Parliament.”  ADDITIONAL REPORTING BY LOW YOUJIN

 

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