GE2025: Raising GST ‘difficult’ but needed to take care of seniors, says Chee Hong Tat (2025)

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SINGAPORE – Increasing the GST from 7 per cent to 9 per cent was a “very difficult decision” but one that was needed to “fulfil our promise to take care of seniors in an ageing society”, said Transport Minister Chee Hong Tat on April 26.

Mr Chee, an incumbent MP for Bishan-Toa Payoh GRC, made the comments in a video on Facebook, addressing proposals made by several opposition parties to lower the goods and services tax to 7 per cent. In the video, he said raising the GST was a very tough decision, and that the Government would have avoided it if it could.

“We studied all the options, and without the GST increase, we would not be able to fulfil our promise to take care of our seniors in an ageing society,” said Mr Chee, who is also Second Minister for Finance.

He added that the revenue generated from GST is part of the progressive system that helps the Government provide support in areas such as healthcare, education, housing and public transport.

With the implementation of permanent GST vouchers and GST absorption for education and healthcare, tourists, foreigners and those who are better off pay most of Singapore’s GST revenue, he noted.

In an interview before a walkabout nearLorong 4 Toa Payoh with his team on April 26, Mr Chee said: “This is what a responsible government needs to do. We don’t want to increase taxes if we can avoid doing so. But if we need to do it, (we will), to look after our people to be able to prepare for the future.

“And we are now in a turbulent world – how to help our companies, our workers and our families. I think it’s important for us to be in a strong enough fiscal position so that if we need to do more to help our people, to look after our seniors, we have the resources to do so.”

Mr Chee also responded to comments from the Singapore Democratic Party (SDP) criticising the Government’s “profligate spending”, calling on opposition parties who are making allegations to check their facts.

During a rally on April 24, Dr Chee Soon Juan, theSDP secretary-general, said this wasteful spending had led to the need to raise taxes and GST.

Dr Chee cited the roll-out of touchless traffic light buttons and the $40 million needed to maintain the current ez-link and Nets FlashPay card system for public transport as examples.

In response, Mr Chee said the Land Transport Authority’s initial decision to sunset the card-based ticketing system and to make SimplyGo the only accepted system for adult fare payments was to save money.

But the decision was reversed when some public transport users expressed their desire to see their fare transactions and card balance details immediately at fare gates or bus card readers, which could not be done when using SimplyGo.

Said Mr Chee: “So we didn’t manage to save the money, but we certainly didn’t spend more money than originally planned, if we continued with the system in the first place.”

He also noted that the Government is increasing transport investments, and he believes that this is an important part of supporting connectivity for Singaporeans.

With the retirement of Defence Minister Ng Eng Hen, Mr Chee will lead the PAP’s Bishan-Toa Payoh team, which includes Saktiandi Supaat and newcomers Cai Yinzhou and Elysa Chen, against the Singapore People’s Party team helmed by secretary-general Steve Chia.

• Samuel Devaraj is a crime and court journalist at The Straits Times.

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