The govt will raise goods and services tax (GST) from 7% to 9% sometime between 2021 and 2025. This is to help fund growing expenditure
in areas like security, healthcare and other social spending.
2021 is the year when the PAP may decide to raise the GST. Why 2021? 2020 is likely the election year and the people will have to decide if they still want the PAP in charge. The 2020 GE is critical as it will affirm and confirm the choice of the people, meaning that the people do not mind the hike in GST to 9%. It will be a mandate for the PAP to do whatever it intends or proposes to do. GST hike is just one of them. The taxes raised, among other things, would be channelled to more foreigners to increase the population and thus more infrastructure needs. Hopefully the compulsory Eldershield, which is likely to be another profit making scheme has not been forced down onto the people and the people also have the chance to decide on this issue.
The PAP is holding back the GST hike to after the GE not without reasons and concerns. Raising the GST before the GE is as good as casting the die and there is no room to manouvre. The people will feel the impact of the hike and will vote according to how the hike affect them. By delaying, the people would still be kept in a quandary, not sure whether it would be raised. The hike would also be an issue in the GE and the PAP would be able to feel the reactions of the people. Despite all the crap talks that the GST is good for the people, all the taxes are good for the people, the PAP is still cautious that this could the bridge too far.
A big vote of approval would mean that the hike is accepted by the people and will be raised. A big fall in popular vote would have the PAP thinking if the hike should go ahead or to go ahead with the risk of losing more votes.
The people are given an option, an opportunity to vote for the GST hike in 2020. It would be their decision and after the GE they should live with it.The PAP is not taking the risk to raise the GST first and hope for the best or come what may. They knew that this is very painful on the people, especially the lower income group as the hike would affect everything and the cost living.
The 2020 GE is a gauge as to how far would the PAP go to raise more taxes, to bring in more foreigners and all the unpopular and extravagant policies and projects.