Goods and services tax (GST)

Goods and Service Tax (GST) is a tax that is imposed on the goods that we purchase and the services that we receive in Singapore. The GST was introduced in Singapore on 1 April 1994 at a rate of 3% of the given price. By 1 July 2007, the GST rate was increased to 7%, and it was also imposed on the import of goods from other countries. Even though this was a new source of taxation that many people in Singapore were disgruntled with at the time, it actually enabled the Singapore government to reduce the personal income taxes imposed on the top range of earners, from 33% progressively to 20% today.