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LHY: GST increase ‘callous and unjustifiable’, foreseeing increased hardship for Singaporeans

Lee Hsien Yang criticized the GST hike that took place on 1 January, deeming it “callous and unjustifiable”, foreseeing inflation and economic strain.

In a recent Facebook post, LHY highlighted the PAP “changed its mind” in 2018 to justify a GST hike, after PM Lee Hsien Loong’s earlier claim in GE2015 that the PAP would be “mad” to raise taxes just because it had garnered a certain percentage of the votes.

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SINGAPORE: The Goods & Services Tax (GST) has increased by 1%, rising from 8% to 9%, effective from 1 January 2024.

In response to this development, Mr Lee Hsien Yang (LHY) expressed deep concern about the adverse effects this hike will have on the citizens of Singapore.

He criticized the decision, labelling it as callous and unjustifiable due to the hardships it would impose and its potential contribution to inflation and economic strain.

Highlighting the temporary nature of the government’s handouts to alleviate these impacts, LHY emphasized the permanence of the tax increase, indicating a prolonged burden on the populace.

As the son of Singapore’s founding father, Lee Kuan Yew, and the younger brother of Prime Minister Lee Hsien Loong, LHY conveyed his disappointment in a Facebook post on the evening of Monday (1 January).

He recalled that In the 2015 General Election, former Workers’ Party Secretary-General Low Thia Khiang, during a WP rally, suggested that the PAP might increase the GST if it gets an overwhelming majority of seats.

However, PM Lee, who is also the secretary-general of PAP, dismissed the WP suggestion.

PM Lee asserted, “What would make you need to raise GST? Profligate spending and irresponsible and unsustainable plans. That is what will hurt and require you to raise GST”

LHY pointed out the contradiction when, in 2018, the PAP had indeed changed its stance, justifying the GST hike among other reasons, citing the necessity to fund healthcare for an ageing population.

“Didn’t PM Lee and his ministers foresee the ageing population issue in 2015?”, asked LHY.

He also noted that, according to the International Monetary Fund (IMF) data, Singapore has been running a chronic balance of account surplus over the last 20 years, with the exception of 2020, as a result of COVID.

“A rise in GST now, with all the attendant hardship it will engender for Singaporeans, is callous and unjustifiable. Rises in water, electricity, and gas prices are adding fuel to this fire,” commented LHY.

It was reported in November last year that high inflation impacted the purchasing power of Singapore residents in 2023, resulting in a 3% decline in real incomes for resident workers at the 20th percentile compared to the previous year.

Median wage earners also saw a decline of 2.3% in their real incomes despite an increase in nominal wages.

At the same time, the Monetary Authority of Singapore expects overall inflation to average 3 to 4 percent, while core inflation is expected to average 2.5 to 3.5 percent. This is down from 2023’s official forecast of headline inflation of around 5 percent and core inflation of around 4 percent.

PM Lee during GE2015: PAP would be ‘mad’ to raise taxes based solely on vote percentages

In the GE2015, PM Lee said that the PAP would be “mad” to raise taxes just because it had garnered a certain percentage of the votes.

This was in response to a suggestion by former WP Secretary-General Low Thia Khiang that the PAP might increase the GST if it gets an overwhelming majority of seats.

At the time, Mr Low cautioned that with a clear mandate, the ruling party’s policies might undergo unexpected changes.

He pointed out a similar instance during the 2006 General Election when the PAP had initially denied considering a GST increase, yet within a year, the GST rate surged to its current 7% in July 2007.

PM Lee dismissed Mr Low’s assertions, refuting the insinuation that the government had intentions of implementing detrimental policies.

He stated, “I think it’s a strange psychology to think that this is a government which is only dying to do bad things to people… Do we look like that?”

“Here we are, trying to do the best and needing support. And I would turn the argument and say, be careful if they give more votes to the WP.”

“WP will become even more arrogant and oppressive over the rest of the parties as they are already so.”

“Raising, adjusting taxes is a very big decision. You consider it carefully, you discuss it thoroughly, and you do it only when you absolutely have to,” said PM Lee.

He added, “What will make you need to raise GST? Profligate spending and irresponsible, unsustainable plans. That is what will hurt and require you to raise taxes and GST.”

In GE2015, the PAP achieved a resounding victory by securing 83 out of 89 contested seats. This triumph granted them a strong mandate and a commanding majority in the Parliament.

The PAP’s vote share significantly surged to 69.9%, marking an impressive increase of nearly ten percentage points from the 60.1% obtained in the 2011 election. Notably, the party attained more than 70% of the vote in 15 out of the 29 wards, a notable outcome unprecedented in recent electoral history.

PAP Ministers defended the necessity of the GST hike

In August 2023, Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong, dismissed the idea of deferring the GST increase despite a surge in Corporate Income Tax (CIT) revenue.

He asserted that such a move would only “store up more problems for the future”, leaving Singapore with fewer resources to address its growing fiscal needs.

Mr Wong further pointed out that growth in corporate income tax revenue is typically aligned with Gross Domestic Product (GDP) growth.

He clarified that any changes to the tax policies take into consideration not just year-to-year fluctuations but also medium-term trends in expenditures and revenues.

With the pressures of an ageing population and escalating healthcare costs, government expenditure is anticipated to increase from the current 18% of GDP to potentially over 20% by FY2030.

He emphasised the importance of continuously monitoring revenue and expenditure trends and adjusting fiscal strategies to meet the aspirations of both present and future Singaporeans.

The GST was raised by 1% from 7% to 8% on 1 January 2023 and was increased by another 1% to 9% on 1 January 2024.

This two-tiered hike was approved by the PAP Members of Parliament in the Budget 2022, despite objections from opposition parties, the WP and the Progress Singapore Party (PSP). They cited the potential impact on the population.

The PAP ministers defended the necessity of the GST hike to generate sufficient revenue for future expenses.

However, WP MPs and PSP NCMPs proposed alternative revenue sources and also suggested dipping further into reserve earnings—a move that, while slowing reserve growth, will still not touch the principal sum. Contrary to the PAP’s allegations, these plans do not constitute “raiding the reserves.”

The GST hike has ignited significant discontent among Singaporeans due to its cascading effect on inflation, causing dissatisfaction with the Singapore Government and the ruling party.

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EDITED VERSION: 11) Increase in Ageing population, collect carton boxes, a good form of exercise. ============================================================== EVEN THE CARTON BOXES COLLECTOR AT MY LOCAL MARKET IS SELDOM SEEN COLLECTING CARTON BOXES NOWADAY. THE LAST TIME I SPOKE TO HIM WAS EARLY 2023 WHEN HE SAID BUSINESS WAS REALLY BAD BECAUSE THE PRICE DROPPED TO A LEVEL THAT WAS NOT PROFITABLE FOR THE main CARTON COLLECTOR EVEN TO COME TO COLLECT CARTONS FROM HIM. THIS FACT SHOWS EVEN THE FACTORIES COLLECTING CARTONS ARE NOT COLLECTING CARTONS FOR RECYCLING BECAUSE THEY ARE NOT MAKING PROFIT DUE TO THE LACK OF DEMAND FOR… Read more »

11) Increase in Ageing population, collect carton boxes, a good form of exercise. ======================================================= EVEN THE CARTON BOXES COLLECTOR AT MY LOCAL MARKET IS NOT SELDOM SEEN COLLECTING CARTON BOXES NOWADAY. THE LAST TIME I SPOKE TO HIM WAS EARLY 2023 WHEN HE SAID BUSINESS WAS REALLY BAD BECAUSE THE PRICE DROPPED TO A LEVEL THAT WAS NOT PROFITABLE FOR THE main CARTON COLLECTOR EVEN TO COME TO COLLECT CARTONS FROM HIM. THIS FACT SHOWS EVEN THE FACTORIES COLLECTING CARTONS ARE NOT COLLECTING CARTONS FOR RECYCLING ARE NOT MAKING PROFIT DUE TO THE LACK OF DEMAND FOR RECYCLED CARTONS BY… Read more »

CCPAP BROTHERS-IN-ARMS

North Sina👲🏻land🦗中元蝗國
Headed by 1953-born serpentine🐍😈
🫡Comrade ‘LEE’ Kin Peng🧸WINNXI da POO❤️💩

South Singha👲🏽stan aka LeePubleeic of StinkyPOO💩❤️ra & malu lah stinking poor langs👵🏻📦👴🏻
Dictated by 1952-born older brother🫡Comrade ‘XI’ Xianlong aka 死🦠險🪱蟲 aka maDamsel🪰fly aka Pink👚🫃🏻Dragon👩🏻‍🍳🦗Fried who ironically witness his last CNY celebration as well as final birth⚰️cycle to, at long😮‍💨loong🤑lust, end on 2/10🥳RIP🪦RIP🙌🏻👏🏻好HOchingLAY咧👍🏻✌🏻🎉🥂🍾🎊

WHERE DOES ALL GST COLLECTED GO TO????
PUBLISH A REPORT EVERY YEAR ON GST EXPENDITURE.
LOL.

Eat fish
Shower less
$8.00 Heart by pass surgery
All these WERE OBVIOUSLY SPOKEN TO EGREGIOUSLY SNIGGER at Sheeps.
And what a pity Sheeps still VOTE all these Millionaire HAUGHTY Scumbags enjoying laughing at Sheeps predicament CREATED by them.

gst is just the tip of iceberg, pee air pee also do what they can to increase household utilities, property tax, do virtually nothing on coe increases, and others.

If gst 1% increases is callous and unjustifiable, what about the property taxes that gone up like 60%?

If you want to do something, just DO IT. I mean, when the Japanese yakusa discipline their members by cutting off a finger, they don’t slow saw it away, they CHOP it off! If DPM Lawrence Wrong thinks it is NECESSARY to raise the GST by two percentage points, then he should do it in ONE go. You see, when you do it one percent a year and stretch it over two years, the end result is for mainstreet prices ending up WAY HIGHER than the 2% GST increase. This is why: For the first year’s one percent, prices are… Read more »

CB oppo. Keep complaining , kpkb got any change?
Been complaining since the last 30 yrs, then?
CB oppo kia useless fxxk, cannot even run a TC and keep their estate CLEAN but can come here to kpkb about increase cost of living?
Really moh lan yong!😆😆😆😆

own self enriched own self. vote wisely pineapple lovers. what do you think?

when is old man jumping up?

it’s 1000% justifiable!
(1) Empty state coffers (SG ranks 6th in countries with highest public debt per GDP in 2023)
(2) SWF make only losses (thanks to her midas touch)
(3) We have no resources
(4) By far the world’s highest mini star celleries

We do not take words of a criminal seriously. Lee Hsien Yang is nothing but a criminal on the run. It’s a matter of time the law will catch up with him!

Are we still paying for them to have $8 by-pass surgery? Oh, sorry, with 9% GST, it will cost them $8.15 now.

PAP BROAD daylight ROBBERS.

PAP money Gougers.

PAP Money Predators.

PAP Money Sharks 🦈.

Question is, … how much longer will this two~faced and totally uncaring regime be able to “fool” it’s people for ?!!!

Until, … they, the people can’t afford to live or eat.

In which case, … we’ve got decades yet !!!

LHY is sadly regretting his decision to selling his house CHEAPLY. Consider what huge losses woul has He hold on and selling now. SG Govt pivotal the growth of Singapore in such short time with many FDI and HQ set up in this island. Inflationary pressure is only a ‘word’, the strong SGD have put many (begging parasites) Singaporeans happy for going away and spending cheaply with their monies. This is ONLY possible in the World whereby SG Govt have the muscles to do thus. If openly SG Govt could shout loudly, (if only), many SG people are nothing but… Read more »

LOL…majority of u voted for them, now u have to live with the consequences. Act like sheep, get the wolves.

I took whole chicken

Along the way can give Chicken Backside to the PIGS mah .

They love Chicken Backside .

This excuse of need to increase GST (to 8% then 9%) due to anticipated increase in healthcare cost for an aging population is ABSOLUTE nonsense: 1) With global inflation, all prices of course have increased 20-30%. So even if GST remained at 7%, the revenue from goods and services would likewise increase about 20-30% in tandem already. So why need to increase the GST rate to further increase the increased revenue further? Fuxking greedy? Talk about putting a burden on the people, hor. 2) When GST was increased from 5% to 7%, the prices of everything went up by 10-15%,… Read more »

For those naive minded, politics is never about you and yours, it’s about them and theirs only, the elites. Occasionally they will come out and show face and concerns, that’s nothing but acting for the mass media. And once every 5 years, some will shed tears for your valuable votes and tell you they are the servants serving you, but after getting elected, we immediately become their (elites) servants. Too bad, human beings have short memories. After receiving some goodies, praise them like the Lord but don’t know the next 4 yrs plus of suffering and getting milked dry dry,… Read more »

Law Wong said store up problems for future. Has he got any proof, any charts any worthwhile statistics to support. Or else basically just telling lies to convince.

Is this all a leader can do, blowing hot air balloons. Utterly tragic for the future of SG – this then is the kind of future he shd be anticipating about and screw his own ass hole then trying to smoke Millions of Voters.

Public Housing, property tax has also been increased based on the valuation of the property. Only useless Ministers who are deceitful in stealing our monies by increasing costs as they deem will embark to rob the 80% Singaporeans.Property assesment is based on rental value of property. HDB allows the rental of entire apartments and raises the values based on these rentals. Property Tax , should not be applied to Public Housing as these should only be for living purposes. Please tell us where are the increases going to, including the GST increase. First World govts. will tell citizens when an… Read more »

GIC value, went down by 48% just read in BT. How not to increase GST???
How to pay Millions & Millions salary???

Cotton Lovers happy can already.

70% Pineapple Lovers:
This is GOOD FOR YOU:
1) Increase GST
2) Increase PUB utilities
3) Increase COE, ERP
4) Increase Food Prices
5) Increase Housing prices
6) Increase Cost of Living
7) Increase Transport fares
8) Increase Hospital and Medical costs
9) Increase Foreigners intake, increase job losses
10) Increase Prices on Chicken, Eat Fish
11) Increase in Ageing population, collect carton boxes, a good form of
exercise. 
We need solutions not price increase!!!! What do you think?

One can vouch for without any doubt, any uncertainty – the SOLE SUCCESSFUL fiscal policy of theirs is REWARDING own pay Millions of Dollars RAIDED from SG Reserves. Their monetary bait to increase productivity (anyone forgot the Monetary Incentives of PAP to enable Companies to CLAIM expenses when they automate or resort to equipment to improve output, like buying computers expenses were claimable. Some companies cheated as well) , to goat SG to procreate FELL FLAT. And INSTEAD OF ENABLING Core Competence of SG, the PAP lazy, mass welcome of ‘talents’ – how come these talents weren’t used by their… Read more »

All I can conclude is that the PAP has not learned the lesson of the loss of a second GRC@Sengkang. Such arrogance! It would not be beyond the G in general and LW specifically to offer extra goodies at Budget 2024 to try to douse any lingering anger at the high cost of living which very likely will rise with the new GST. Singaporeans should accept whatever is given but must not forget to send a message to the PAP not to take Singaporeans for granted. We must teach the PAP a hard lesson by depriving the PAP its two… Read more »

Damages already done and hard to reverse unless SG fall into deflation, which is equally bad.

SG could have avoided increasing GST from 3% to 5% to 7% and then to 9% today if our very wasteful spendings on civil engineering works, half I believe are redundant or unnecessary. Coupled with exceptionally high civil servant pays and a bloated headcount in many departments, we could have easily save $10b to $15b a year. More than enough for raising GST in succession over the years

Just back from shengshong…prices of all products up…on top if that the 9% gst tax…🤪

Obviously inside out of, Nationalist Singapreans Core (opposite of what PAP always determine SG is only a society to them, esp when they REFUSED INTENTIONALLY to UNITE a SG effectively into a Nationaliatic Cohesive country which is TO THEIR BIG DISADVANTAGE wanting to EQUATE PAP=Singapore) for donkey years understand HOW COVERTLY these self rewarding PAP Millionaire play with SG, toy with SG, manipulate SG, JUICE SG relentlessly, increase foreign trash numbers to give fake impression SG is growing and doing well under them.

PAP has Minister like Faishal Ibrahim telling us, we have good business in Geylang Seria. 3 Millions Visitors.
Can someone please help check how many papers has Faishal published since he is a Professor from NUS! I too want to know what Papers has Maliki published since he has a PhD in Social Studies!
Stop your BS, PAP. You have irritated lots of EDUCATED Singaporeans!

Nobody interested in Lee solution for the World. All self serving for their own Empire.

Who the fuck wants to listen to some motherfucking bullshits from a fugitive? Only idiots do!

The more we are screwed, the more votes they will get.
This is not a myth.
It is not only a fact but a mysterious phenomenon found only on this red dot.
Even Albert Einstein a Nobel Laureate cannot explain why this is so.

Hardship? Did not LKY state that SG people must have ‘hide’ in the belly? After all SG must be ‘hooligan’ to rule, lord and tame the following (pest) citizens of this land, seeing for the votes return time and again. What ‘callous’ is ONLY 9 percentage point as compared to other First World Country. IT SHOULD HAVE BEEN AT LEAST 12%! How many Singaporeans are paying taxes?

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