Heng Swee Keat will hike GST to compensate for corporate tax cut: RP chief

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Reform Party chief Kenneth Jeyaretnam has rejected his former schoolmate, Finance Minister Heng Swee Keat’s claims that Singapore’s tax system is a fair and progressive one, calling such a statement “ludicrous” and an “Orwellian charade” in a blog post this past Thursday:

“Heng studied economics with me at Cambridge University in the early 80s. He did not get a First but he still must be able to recognize how ludicrous it is to talk of the Singapore tax system being “fair and progressive”.”

The son of the late J.B. Jeyaretnam further postulated that the Finance Minister is planning to hike the Goods and Services Tax (GST) to “compensate for” the corporate tax cut that the Finance Ministry will initiate to counter the corporate tax reduction that the US government is initiating to attract businesses to keep income within the US.

Jeyaretnam added that he expects GST to rise by a startling 10-11 per cent, if the Finance Ministry slashes corporate tax by half:

“In order to counter the US corporate tax rate cut, it is clear Heng is planning to slash the corporate tax rate to close to zero while hiking the GST rate to compensate. GST is a highly regressive tax since it accounts for a much bigger share of the incomes of the less well-off than the wealthy. The PAP alway claims that it returns the GST to the less well off in the form of vouchers but this accounts for only a small fraction of total revenues raised through GST. In 2017 corporate taxes are estimated to raise about $13 billion while GST is expected to bring in $11 billion. If Heng slashes corporation tax by 50% he is going to have to increase the GST rate to 10-11% to compensate.”

The opposition politician asserted that Heng Swee Keat will continue to claim that the Singapore tax system is a fair one even if such a scheme is implemented:

“When this happens Heng will no doubt tell Singaporeans that the tax system continues to be fair and progressive. He will present a Budget that hides just how much of a surplus the Goverment is really making and say that there is no more money for social programmes if Singapore is to avoid bankruptcy. He, like the other PAP multi-millionaire and billionaire ministers, will pretend to be in the same boat as the majority of Singaporeans. And you will believe him.”

Nothing for Heng Swee Keat to shout about for spending only $13b on healthcare from 2020

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49 comments

  1. The rich gets richer – poor gets poorer. Give rebate tax to the rich n tax the poor. You lousy ministers are a bunch of shit going about bullying the poor for your own benefit

  2. Alan Tan says:

    KJ already say duwan to hear Singaporeans complaining abt it in the last GE lo..majority deserves what they voted for ma..even when they are suck dry they are happy

  3. How can this ministers use citizens taxes to replace corporate tax, and in the end the citizen has to suffer more. What a stupid ideas of this finance minister, they should have the pays cut by 40% to replace corporate tax, why not?.

    1. Frank Chong no connection between train breakdown of lost revenue and GST hike.. Loss of Revenue ofTrain Breakdown is at Operator Level and Hike of GST is at National Level where GIC lost money and need money fast to stop the plug..

  4. Increase tax for who? Definitely not for the benefit of Majullah Singapura! Benefit for dumdum gamen. Unemployment on the rise, economy not doing well, yet increasing the GST for f#%$!!! Why not lower all your miniskirt salary lah! tupip idiot leaders are not competent to hv such high salary while the people suffer….knn! VTO!

  5. For such minds Singaporeans are ready pay millions ! Every business is bad. Obviously corporate tax comes down. Who created the cost issue ? You ! The ruling Junta ! Now want to increase GST. Then ask them to create a fairer tax system. Give zero tax foe basic food items , basic medicine n schools. You can have luxury tax for cars, rolex watches n bungalows. Rich pay more. Poor who lives simply are relieved. But elites wont do anything that bite them. VTO.

    1. Business is bad because business cost, namely rental, is too high. Now, he increase GST, which will dampen consumption, and seminar for goods and services, so clever

  6. Brian Foo says:

    First we talk about productivity using automation to help company in singapore to use less people. Then we talk about reduce corporate tax to counter US then the company using industry 4.0 decrease hiring. So people left with lesser job and pay more gst.

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