GST rate increase in 2023 and 2024
The government during Budget 2022 announced a staged increase in the goods and services tax (GST) from 7% to 9% in 2 stages – a 1% increase to 8% effective 1 Jan 2023 and to 9% effective 1 Jan 2024.
The $6 billion Assurance Package earlier announced in 2020 to cushion the impact of the GST hike will also receive a boost of $640 million, totalling $6.6 billion, said Finance Minister Lawrence Wong on Friday (Feb 18) in his maiden Budget speech.
The delayed GST hike will bring in about 0.7 per cent of gross domestic product in revenue annually – about $3.5 billion – when the full hike kicks in 2024. The objective of the hike will go towards supporting healthcare expenditure and to take care of senior citizens while other areas of social spending rise as well.
In Budget 2022, the Minister for Finance and DPM Lawrence Wong announced that the GST rate will be increased from:
(i) 7% to 8% with effect from 1 Jan 2023; and
The revenue from the increase in GST will go towards supporting the country’s healthcare expenditure, and to take care of our seniors.
IRAS has published the e-tax guide and the following on the GST increase effective 01 Jan 2023 and 01 Jan 2024. Please click here to download the e-tax guide for 2024 e-tax guides for GST-registered businesses:
- Checklist for GST rate change preparation (Click here)
- Transitional rules for GST rate change (Click here)
- Adjustments and concessions for GST rate change (Click here)
- GST rate for consumers (Click here)
- Preparing for GST rate change (Click here)
- Resources for GST rate change (Click here)
- Frequently asked questions for Businesses – GST rate change 2024 (Click here)
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