SM Goh says plan for GST hike came after elections
By Asha Popatlal, Channel NewsAsia | Posted: 17 January 2007 1426
hrs
ABU DHABI: With Budget Day coming up, all eyes and ears will be on
the announcement on the Goods and Services Tax (GST), and offset
package.
Commenting on any possible fallout, Senior Minister Goh Chok Tong
said price increases would not be that big.
Speaking to media at the end of his 9-day official trip to Morocco
and Abu Dhabi, Mr Goh was reluctant to reveal any details of the
GST package.
He would only say there would be measures to mitigate immediate
price increases, with the aim of long-term economic growth to push
up wages.
However, he did address perceptions about such unpopular moves
being introduced after elections.
"That's not quite wrong. That's politics.
That's the way campaigns should be fought. You concentrate on what
you want to do the positive parts. And of course, in some
instances, you have to raise revenue to support the programmes. And
after the election, you have got to translate your pledge into
reality," said Mr Goh. Mr Goh also revealed that the idea to
raise the GST came much later.
He said: "I'll tell you quite candidly and honestly during
election time, the idea of GST had not come in yet. Because we just
thought we've got to do the Workfare bonus, we'll look at the
sums later on. And we find that it's better for us to raise GST,
not just for the programmes, but for anything we want to spend more
on education, for example."
What is important though, he said, is that at the end of a 5-year
term, the pain must produce good results, with everyone saying it
was worth it. - CNA/so
