It is difficult to increase Goods and Services Tax (GST) in an uncertain economic environment. But the government needs money, instead of rising GST, water tax and carbon tax can generate the same effect and revenue. They will do it in two phases. First they collect the increased water tax in 2107 and 2018, then followed by carbon tax. GST is a dirty word. People don’t like sales or value added tax as they think it applies to everyone, especially low-income families. GST also has a psychological effect, especially for businesses. The destruction created by GST to the economy is huge and so GST is a weapon of last resort. GST increase is aso bad for election. Hence, the PAP government will try not to raise GST before the next election. In the meantime, they have to depend on water tax and carbon tax to generate revenue. They have already tried very best to make money from ERP, road tax, COEs, car parks fees, tobacco tax, liquor tax etc. (and indirectly through increased town...
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