Jakarta –
Inhabitant Singapore broke into the mall. That’s because the sales tax will increase starting January 1, 2023 for the first time in 15 years.
Soif Noor, for example, bought furniture and fixtures for her new home. The purchase was made four months before his transfer.
Starting next year, the sales tax on everything from groceries to diamond rings will increase from 7% to 8%.
“A 1% hike may be small, but any savings help in this inflationary environment,” he said ReutersWednesday (28/12/2022).
Economists say the impact of tax increases on Singapore it can be dampened by a surge in consumer spending before being offset by a subsequent decline. By buying everything now, Soif says he can save S$250 (US$185) on the purchase.
Soif said some of her male colleagues rushed over to get an engagement ring. Their boyfriends urge them to propose immediately, because if they don’t it will be more expensive next year.
With the new sales tax Singapore, so the country’s tax rate is 7% higher than Thailand’s. However, it is still lower than Indonesia at 11%. The tax is half of the approximately 20% imposed in many European countries and less than 10% in Japan.
Singapore’s move to raise this tax comes as several countries such as Thailand and Italy agreed to a consumption tax cut to help their citizens cope with the rising cost of living.
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(acd/eng)
