Singapore Will Raise Its Goods and Services Tax to 8% in January

Singapore’s goods and services tax, or GST, will be raised from 7% to 8% from January 1, 2023. It is the first of two planned GST increases, with the second anticipated for January 2024, when the GST will be raised from 8% to 9%.

The Goods and Services Tax (GST) is a form of consumption tax applied to almost everything sold in Singapore. On January 1, 2023, imports of low-value items worth less than S$400 will be subject to GST. With the new policy in place, the tax will apply to all imported products and services into Singapore, including those purchased online.

Businesses in Singapore with an annual turnover of more than US$742,000 are required to register for GST and levy GST at the current rate on all taxable goods.

Singapore’s inflation rate jumped to 7.5% in August, an all-time high, before slowing slightly in recent months, with November’s annual inflation rate standing at 6.7%, although this is still much higher than the 2% inflation rate suggested by the country’s central bank for general price stability.