Singapore Democratic Party Pushes for GST Reduction

In a move that could shake up the economic landscape, the Singapore Democratic Party (SDP) urged the government to slash the Goods and Services Tax (GST) from 9% to 7% in light of the tariffs imposed by the United States.

This bold demand comes as a response to the 10% tariffs rolled out by US President Donald Trump on April 2, which affect imports from Singapore and other nations. The SDP believes that lowering GST could significantly alleviate the financial pressure many Singaporeans face with soaring living costs.

A Call to Action for Economic Relief

The SDP emphasized that reducing the GST would not only help families cope with rising expenses but also stimulate local spending, preventing further cost increases. They stated, "This move is essential to support Singaporeans during these challenging times."

Addressing Rising Costs and Inequalities

In their statement, the party also pushed for a rollback of fees that had spiked since the pandemic, suggesting that prices for water, public transport fares, and electronic road pricing (ERP) should revert to pre-COVID levels.

Moreover, the SDP framed their GST reduction proposal as part of a larger strategy to restructure the economy and tackle the growing income and wealth inequality in Singapore. They claimed, "The government must take timely action to ensure that every resident feels valued and supported during these turbulent times."

Can This Move Make a Difference?

With the potential impact of Trump's tariffs looming over Singapore's economy, the decision to cut GST might be seen not just as a financial relief measure but also as a crucial step towards fostering unity and resilience among Singaporeans amidst global uncertainties.