Lower GST "less effective in helping the lower & middle income."

No GST cut even if economy worsens, says Lim Hwee Hua

Excerpts from Channelnewsasia:

Second Finance Minister Lim Hwee Hua said the goods and services tax (GST) will not be reduced.

During the second reading of the GST Amendment Bill on Tuesday, Mrs Lim was asked by West Coast GRC MP Ho Geok Choo if the GST can be cut temporarily if economic conditions worsen.

Mrs Lim said a temporary cut is not desirable as it will result in more administrative costs due to the higher compliance.

“A two per cent GST cut would be less effective in helping the lower and middle income groups compared to the measures that were announced to help households in the Budget 2009 statement. A better way would be to target household assistance schemes at those who would require these assistance more.” – Lim Hwee Hua.