The government of Singapore has announced additional measures to help citizens cope with inflation and the impact of a higher goods and services tax (GST) rate. The amount to be given out under the GST Voucher (GSTV) scheme will increase from $500 to $700 in 2023 for those residing in homes with annual values of $13,000 and below, and this will be raised to $850 from 2024 onwards. Those with homes with annual values of above $13,000 and up to $21,000 will receive $350 in 2023, which is $100 more than before, and the amount will be further increased to $450 from 2024 onwards. The increase will cost the government $530 million a year, which means the GSTV scheme will cost the government $1.7 billion annually from 2024.

The Assurance Package (AP) introduced in 2020 will be topped up by $3 billion, bringing the total amount to be disbursed to $9.6 billion, and eligible Singaporeans will receive between $300 and $650 in cash. Additionally, there will be a Cost-of-Living Special Payment of between $200 and $400 for each eligible adult Singaporean aged 21 and above in 2023, and a Cost-of-Living Seniors’ Bonus of between $200 and $300 for eligible seniors aged 55 and above. U-Save rebates provided to households over the next three tranches of disbursements this year will be doubled, and each child aged six and below will get a top-up of $400 to his or her Child Development Account, while older children will receive a $300 top-up to their Edusave or Post-Secondary Education Accounts.

Singapore's Deputy Prime Minister and Finance Minister, Lawrence Wong, announced the enhancements to the permanent GSTV scheme and AP will ensure that most retirees and lower-income households will not be impacted by the GST rate increase. Wong cautioned that Singaporeans should understand that it is not fiscally sustainable to rely heavily on government support every year to cope with inflation, and urged citizens to increase productivity and competitiveness so that workers can earn more and make up for the higher prices.

Source: The Straits Times