PUBLISHED ONApril 25, 2025 8:11 AMByDana LeongNational Development Minister Desmond Lee has refuted proposals set forward by several opposition parties to lower the GST rate and provide exemptions on basic necessities, saying that GST needs to remain a progressive tax.
Other examples of progressive taxes include income tax and stamp duty.
Speaking at a doorstop interview at the People's Action Party (PAP) Boon Lay branch on Friday (April 25), Lee fielded a question regarding cost-of-living concerns and recent criticisms from opposition parties.
Lee is anchoring the PAP team contesting West Coast-Jurong West GRC, and they're up against a Progress Singapore Party (PSP) team helmed by chairman Dr Tan Cheng Bock.
At their first rally on Thursday (April 24), Singapore Democratic Party (SDP) party chief Chee Soon Juan criticised the Government's practice of handing out cost-of-living vouchers while simultaneously raising the GST rate, likening it to "an arsonist setting your house on fire and giving you a cup of water to put it out".
Dr Tan and PSP's chief Leong Mun Wai also said at PSP's rally on Thursday that the PAP has "lost its way", and called for a GST rollback to seven per cent in addition to exemptions on essential items like rice, water and milk formula from GST.
"GST is collected from everybody who spends and we want to make it progressive by making sure that we support lower and middle income households, and this is done most effectively through targeted measures," argued Lee.
The targeted measures in particular, include Budget 2025 initiatives such as the GST Voucher scheme, and Project 100=50 scheme, which provides half-priced grocery shopping for Boon Lay and Jurong Spring residents.
"If you try to waive GST on essentials, then that means people who are much better off, people who come from overseas here to consume these resources, or who buy in larger quantities, even from detailed options, then GST will not be collected from them," Lee added.
He also elaborated on collecting taxes from "enterprises, especially large enterprises, from tourists and foreigners as well as from better off individuals", which would bring in the necessary revenue to "push ahead with the additional support that we need for Singaporeans".
Lee also said that universal measures, such as subsidies and tax waivers, have been implemented in neighbouring countries but "have disproportionately benefited the better off and the lower income don't get as much support".
"Our spending by the PAP party on Singaporeans through the social side of spending exceeds economic spending," he said, reinforcing the need for revenue from GST collection.
"It's important for us to be objective about the impact of the programmes. No scheme, no policy, is perfect, and our responsibility as a proactive PAP government is to ensure that our policies continue to reflect the needs of people on the ground."
Speaking at a PSP rally on Thursday night, Dr Tan made a comment regarding PAP candidates coming "from the civil service...the army...they come from...civil service organisations", which would eventually lead to "group thinking" and a lack of diversity in ideas.
On this, Lee countered that these candidates are diverse in terms of age, gender, background, and that the party also has candidates from the private sector, including doctors and lawyers.
"We have people who are working in the social sector, people who are from NGOs, people who have also taken the path less travelled," countered Lee.
With such a variety of professionals within the PAP, there is a "diversity of thinking on the ground", he added.
Lee's team will be up against the PSP's A-team comprising Dr Tan, Leong, Hazel Poa, Sani Ismail and Sumarleki Amjah in a rematch for West-Coast Jurong West GRC on May 3.
It is likely to be a close match again this year, with the PAP's West Coast team emerging victorious with 51.69 per cent of votes — the slimmest margin for GE2020.
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