According to the 2018 Budget statement on Feb. 19, 2018, the Goods and Services Tax (GST) in Singapore will be raised from 7 to 9 percent in time to come.

This upward revision will take place at an unspecified time between 2021 and 2025.

Finance minister Heng Swee Keat said this move is in preparation for expected expenditure in healthcare, infrastructure, security and education from 2021 to 2030.

PM Lee meme

Immediately making the rounds on the Internet the moment it was announced that the GST will be raised to 9 percent was this meme:

It is apparently a screen shot of an article from The New Paper dated Sept. 6, 2015.

It attributed the quote about GST increase as a result of profligate spending to Prime Minister Lee Hsien Loong.

Is it real?

This is indeed a real article: PM Lee quashes WP's GST claim

What is the context though?

At a Sept. 4, 2015 rally in the middle of the general election hustings, opposition Workers' Party's chief Low Thia Khiang said the ruling government could change "its mind anytime" and would "reverse policies" if the PAP won with a strong mandate.

One possibility raised by Low is an increase in GST.

PM Lee's comments were in response to this claim.

In fact, Deputy Prime Minister Tharman Shanmugaratnam accused the opposition of "scaremongering" when talking about what the PAP will do after the election

At a PAP rally held in Bukit Panjang SMC, he said: "That is just cheap. We have been upfront".

Importantly, Tharman noted that the government made clear in its Budget statement earlier in 2015 that it has raised the revenue needed for public spending over the next five years.

Workers' Party Low Thia Khiang, the oracle

Low's words were indeed prescient for the next election cycle.

And based on the TNP article, it is apparent that Low's words have aged well as the GST increase will occur after the next election, with the announcement less than three years after GE2015.

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PM Lee's words

On the other hand, PM Lee's comments that TNP reported, which were made during a GE2015 press conference, are more easily taken out of context.

This is so as his original comments were to denounce unjustified spending that do not have clear sources of financing, such as ideas mooted by the opposition, and because the raising of taxes should only be done "when you absolutely have to".

On the same topic in Today (Sept. 6, 2015), PM Lee also pointed to how the opposition manifestos have promised to give out money to Singaporeans, but “nowhere do they say you need to tax”.

This was what PM Lee said in full:

“We don’t adjust taxes, raise taxes just because we got a percentage at the elections — we’ll be mad to do that."

"Raising, adjusting taxes is a very big decision. You consider it carefully, you discuss it thoroughly, and you do it only when you absolutely have to.

"What will make you need to raise GST? Profligate spending and irresponsible, unsustainable plans. That is what will hurt and require you to raise taxes and GST."

He noted that the opposition party manifestos had plans to give money to various groups, but had little to say about how the spending would be financed.

"So I think when you see a manifesto like that, that's when you must ask, where's the money coming from?"

Finance minister Heng had explained in his 2018 Budget statement about why the GST increase is justified:

“Between 2021 to 2030, if we do not take measures early, we will not have enough revenue to meet our growing needs.”

There is one instance where PM Lee's remarks aged better.

In the same interview, Today reported that PM Lee said that the government will do what is necessary, and in doing so, it will explain and justify its policies.

And PM Lee's conclusion with regards to raising taxes?

“And if they cannot be justified... then we will pay the price at the next election".