WP could have used GST allegation ‘to great effect for political attacks’ had Govt not challenged it: Chee Hong Tat

SINGAPORE – Had the Government not rebutted Workers' Party (WP) chairman Sylvia Lim's "test balloons" allegation over the impending Goods and Services Tax (GST) hike, the opposition party could have used the matter "to great effect for political attacks, including during the next General Election", Senior Minister of State Chee Hong Tat said on Saturday (March 10).

In a letter posted on the ruling People's Action Party's (PAP) website, Mr Chee wrote that the Government had to respond because "the underlying sting of that allegation was that the Government was being dishonest with the people".

"This is both false and vicious, and goes to the heart of Government's integrity," he added in the latest exchange between the WP and several PAP leaders, including Finance Minister Heng Swee Keat, Law and Home Affairs Minister K. Shanmugam, Leader of the House Grace Fu and Senior Minister of State for Finance and Law Indranee Rajah.

If Ms Lim's allegation had not been rebutted, the WP could have alleged at upcoming election rallies that her comments were true because the Government did not challenge them, Mr Chee, the Senior Minister of State for Health and Communication and Information, cited as an example of a political attack the opposition party could have launched.

The WP, he added, could also go on to make other election arguments such as, "this Government cannot be trusted, either on taxes or any other policies", or "vote against the PAP to teach them a lesson, and stop them from raising the GST after the elections".

The WP and Ms Lim have not responded to Mr Chee's comments.

The issue has been on the boil since last Thursday (March 1), when Ms Lim said in comments made during the round-up of the Budget debate that the Government, in the run-up to this year's Budget, had floated "test balloons" on a GST hike that showed an adverse public reaction to any increase.

Ms Lim then said she suspected that if not for this, the Government would have announced an immediate hike in the GST, instead of the 2021-2025 timeframe stated by Mr Heng in his Budget statement.

Her comments prompted rebuttals from Mr Heng, while Mr Shanmugam called on her to withdraw the accusation, which he said amounted to a charge that the Government had behaved dishonestly. Over the next few days, Mr Heng, and then Ms Fu, asked her to apologise and withdraw the allegation.

Ms Lim refused to apologise or retract her comments when she delivered a statement on the matter on Thursday, though she acknowledged that her initial suspicion "may not have been correct" given that the Government has refuted it.

She added: "I can accept that my suspicion may have been wrong but I do not accept that my suspicion had no basis and I do not accept that I have failed or been derelict in my duty as an MP to this House."

During the pointed exchange in Parliament on Thursday, WP chief Low Thia Khiang pointed out that the Government could have cleared the air earlier. He also acknowledged that Ms Lim had accepted that "her suspicion wasn't really correct at that point in time".

In his letter, Mr Lee said the Government had gotten Ms Lim "to admit, and Mr Low to confirm, that her suspicions were wrong, and she had no basis to accuse the Government of intending to raise GST immediately and then backtracking".

The PAP minister added: "The WP can now no longer rely on this falsehood to attack the Government's credibility and trustworthiness. This will make for a more honest debate, in Parliament and outside."