Deputy Prime Minister Heng Swee Keat on Sunday, Nov. 10, revealed that raising the Goods and Services Tax (GST) rate is an unpopular move, but the government would not shy away from doing it -- election season or not.

Not going to let opposition use GST increase as bait

He touched on this sensitive topic during his speech at the People’s Action Party (PAP) convention, which he described as possibly “the last party gathering before the next General Election”.

Heng said the government could have waited for the upcoming GE to be over before announcing the GST hike of two percentage points, but that would not be the honest thing to do.

He added that party activists had urged him not to talk about the move anymore, as the elections are coming.

"The responsible thing to do is to be upfront, and tell the people that it will happen. This is what integrity means. We don't hide from difficult truths," Heng said.

"If I don't bring it up, the opposition parties definitely will -- so it's better that you hear it directly from me."

He also said a support package to cushion the impact of the impending Goods and Services Tax (GST) hike will be announced at the 2020 Budget.

Heng said: "We want to assure you that there will be help during the transition, so that Singaporeans need not worry or be riled up by the opposition who want to find something to get people to be angry."

More about GST to be revealed at 2020 Budget

Heng said the GST Voucher is a permanent scheme to help seniors and low-income households cope with the tax hike.

The 58-year-old finance minister said: “At next year’s Budget, I will provide more details of the GST support package. This will cushion the impact of the increase, for all Singaporean households.”

“More will be given to those with less, because this is fair.”

GST announcement in advance

He said the government had given such support packages each time it raised the GST, but this time it has announced it in advance.

He added that the support package is not an “election goodie”.

It will only be given when the GST is raised in the next term of government, which will take effect some time between 2021 and 2025.

The government has not decided on the exact timing of the planned GST hike, which is from 7 percent to 9 percent.

Fellow PAP comrades can help

Heng acknowledged that “some unhappiness will remain” even with the support package.

He urged his comrades to “help explain” the GST increase to Singaporeans.

He added: “Like generations before us, we are taking a bit of pain for the good of our children, and generations to come.”

Heng is expected to succeed Prime Minister Lee Hsien Loong when he steps down.

What is the PAP convention?

The PA65 Awards and Convention was held at the Singapore Expo.

There were 2,500 PAP activists in attendance.

It happens every year.