Singapore will raise its GST next year. Know How will it work?
By The Exchange Team
Singapore's goods and services tax, or GST, will be raised from 7% to 8% on January 1.
It is the first of two planned GST increases, with the second scheduled for Jan 2024, when the GST will be raised from 8% to 9%.
Singapore's GST is a consumption tax. Imported products under S$400 will be subject to GST from Jan. 1, 2023.
Currently, only imported goods worth more than S$400 are subject to GST.
With the change, all goods and services imported into Singapore, including those purchased online, will be taxed.
Singaporean businesses with a turnover over S$1 million (US$742,000) must register for GST and levy GST on all taxable goods at the current rate.
Despite opposition party members opposing the GST raise due to inflationary pressures, Singapore's Parliament passed the bill to amend the GST in November.