SINGAPORE — What would have been a routine wrap-up of the Budget debate on Thursday (Mar 1) was anything but, with Law and Home Affairs Minister K Shanmugam accusing Workers’ Party chairman Sylvia Lim of being “hypocritical” and making “baseless allegations” against the Government.

Ms Lim fired back by suggesting that Mr Shanmugam had a bone to pick with her for disagreeing with him on several occasions in the House, as Finance Minister Heng Swee Keat joined in the fray and demanded that Ms Lim retract her comments that the Government had postponed the goods and services tax (GST) hike because of a public backlash.

The heated exchanges went on for about 10 minutes and culminated in the calling of a division bell by Mr Heng, where all WP Members of Parliament (MPs) — excluding party chief Low Thia Khiang who was absent from Parliament as he had to attend to family matters — voting against the Budget. The 89 other MPs present — comprising those from the ruling People’s Action Party (PAP) and Nominated MPs — voted in favour.

In a division, the vote of each MP is collected and tabulated through an electronic voting system.

On Thursday, the parliamentary debate on Budget 2018 drew to a close after more than two days of debate, which saw 50 over MPs speaking on various matters.

Mr Heng had finished delivering his round-up speech, when Ms Lim, an Aljunied Group Representative Constituency MP, sought clarifications on the timing of the GST increase announcement. She said she “suspected” that the Government deferred the hike — which will be implemented some time between 2021 and 2025 — because its hands were tied, as a result of public proclamations by political leaders that the Republic has sufficient funds till the end of the decade for the rising expenditure.

On Tuesday, WP assistant-secretary general Pritam Singh said the party is unable to support the GST hike “at this moment in time” given the lack of further details on how other forms of tax will add to the Government’s income.

Echoing Mr Singh’s sentiment, Ms Lim added: “It is ridiculous for the Government to expect us, as a responsible party, to support something where all the information is still not available and we do not have a crystal ball. It is our intention to support the Budget when the vote is called, but this should not be mistaken as a support for this announcement of some possible GST hike in a later Budget.”

This prompted Mr Shanmugam to rise from his seat and point out that the prospect of a tax hike was first raised as far back as during the National Day Rally in 2013. “(Ms Lim said that) because of the public reaction, the Government backed down… and therefore, this announcement is being made of a future GST increase. Can I get her to agree that that is thoroughly hypocritical, and typical of the statements she makes in this House?” he said.

In response, Ms Lim said: “I can understand why (Mr Shanmugam) wants to accuse me of various things, because he probably is not happy about past debates where I had disagreed with (him)… In typical fashion, he always accuses me of dishonesty. As far as I am concerned, I acted honestly.” Her statement was based on an “honest suspicion”, she added.

Ms Lim said that amid public discussion about the need to boost Government coffers in the run-up to the Budget last month, many people had “seized on the fact” that Deputy Prime Minister Tharman Shanmugaratnam and other leaders had earlier said publicly that the Government has enough money for the decade. Mr Tharman, who was then finance minister, had said during the 2015 Budget that the revenue measures taken by the Government would provide sufficiently for spending planned until 2020.

Ms Lim said: “The public pointed out (before the timeframe of the GST increase was announced), hey, is this a contradiction? So I rather suspect myself, that the Government is stuck with (what its leaders had said earlier). Otherwise, if the announcements had not been made, perhaps we may be debating the GST hike today.”

Mr Shanmugam charged that Ms Lim was making an “accusation that the Government is behaving dishonestly”. He pointed out that various Cabinet ministers in recent years, including Mr Heng and Prime Minister Lee Hsien Loong, had alluded to the possibility of raising GST. Making the point that there was nothing unusual about implementing a tax or a tax hike years after they are broached publicly, Mr Shammugam also noted that GST came into force “much later” in 1994, after the idea was first mooted in the late 1980s.

He said: “Given those facts, would Ms Lim be prepared to withdraw the very serious allegations she makes, that the Government announces something late last year but because of how the public (has reacted), we quickly back down… (She is) basically making an accusation that the Government is behaving dishonestly.”

But Ms Lim said: “I never said the Government behaved dishonestly. I said the Government is stuck with the announcement that they have enough money for the decade… I clearly said that it was my honest suspicion.”

Pointing out that MPs are “entitled to have a view”, she added: “As far as I know, there is such a thing as parliamentary privilege… This is the value of this chamber… This is what we as MPs have to do, to get better clarity on matters of public interest.”

Wading into the fray, Mr Heng reiterated that the earlier proclamations were “accurate and truthful”.

“If indeed we were so short (of money), wouldn’t it be the logical thing to say, let’s (raise revenue) now, and find some way to do it?” he said. The leaders’ previous statements were based on an “honest assessment of our position which remains accurate till today”. “And that is why I did not have to do a GST increase now in this Budget,” he said.

HENG TAKES WP TO TASK

The sharp exchanges between Mr Shanmugam, Mr Heng and Ms Lim were not the only flashpoints between the PAP and the WP in Parliament on Thursday.

In his round-up speech, Mr Heng criticised Mr Low for suggesting that the debate centering on the impending GST hike has become an “unnecessary distraction” from the focus of the Budget.

While lauding the Budget as a “forward-looking” one, Mr Low had said on Wednesday that it was “looking forward too hastily” for future revenue streams by prematurely announcing the 2-percentage point GST hike.

Parliament is the forum to debate “serious issues affecting our nation’s future”, said Mr Heng, adding that he was “puzzled” by Mr Low’s comments. “I really hope that the WP MPs, having run on a slogan of a First World Parliament, is not just using attractive election slogans, with no real intent to take your parliamentary responsibilities seriously,” said Mr Heng.

While pointing out that most of the WP MPs simply wanted the Government to do more without providing ideas on where to get the funds, Mr Heng also had strong words for Mr Singh for taking a “wait-and-see posture” on the GST hike, and suggesting that the Government tap on revenue from land sales to fund recurrent spending.

Mr Singh had also suggested that the Republic’s move towards a cashless society would make tax collection — from taxi drivers and hawkers for example — more efficient and this is “likely to have a positive impact on tax revenues”.

“Mr Pritam Singh cannot be serious,” Mr Heng said. “Any serious-minded person will appreciate that not one of these is a viable alternative to a GST increase. They are distractions. Mr Low Thia Khiang asked us not to be distracted. Instead of taking a principled stand, Mr Pritam Singh would rather withhold his support for the GST increase by adopting a ‘wait-and-see’ posture.”

But Mr Heng shot down the suggestion: “It is easy to fall back on politically expedient options and pretend that they will solve our long-term challenges. But this is a dishonest and irresponsible approach.”

If the Republic were to do what Mr Singh suggested, future generations of Singaporeans could “easily end up in serious deficit”, he warned. “Then, we will be having a very different conversation about our future,” he added.