Why Raising GST Might Be a Bad Idea, According to Jamus Lim
In a parliamentary showdown, Workers’ Party MP Jamus Lim slammed the plan to lift the Goods and Services Tax (GST) as an “irresponsible” move that should be put on hold. He countered the Deputy Prime Minister’s argument that boosting GST is a “more responsible” approach to address Singapore’s spending demands.
The Case Against a GST Increase
- Demand and Supply Tension: While tax hikes can curb consumer spending, they also raise business costs, potentially squeezing supply and driving prices up even more.
- Inflation Trends in Japan: Every time Japan’s version of GST went up, inflation jumped roughly twice as fast for about a year. Imagine putting a similar tax boost in Singapore.
- Real‑World Impact: Core inflation hit 5.3% in October, a steep climb from 5.1% in August and the best since the 2008 peak of 5.5%. Food prices spiked by 6.9%, utilities by 16%, and electricity by a mind‑blowing 26%.
Lim said that inflation, while a global issue, has effectively become a second tax on everyday Singaporeans. Even with rebates, vouchers, and U‑Save perks, most families feel the pinch because the cost of basic items—like a simple bowl of mixed rice—has jumped from $3 to $5.
A Call for Targeted Relief
“Let’s temporarily exempt the most volatile essentials from the GST hike,” Lim suggested. “We’re talking about items that people can’t do without, not optional splurges.”
Louis Chua’s Take on the GST Debate
Also from Sengkang GRC, MP Louis Chua raised doubts about the timing of the GST rise. He worried that even if inflation eventually cools, prices might stay stubbornly high, keeping the cost of living burdensome.
Chua criticized the Assurance Package, which aims to offset five years of GST increases, calling it a temporary fix amid a permanent tax raise.
Bottom Line
Limit the GST bump—or at least give the most essential goods a break—could ease the squeeze on families. It’s a conversation that matters when the next dollar in your wallet feels a little heavier.
