SDP calls for immediate GST reduction to 7% in face of US tariffs on S'pore & other countries

The Singapore Democratic Party (SDP) has called on the Singapore government to "immediately reduce" the Goods and Services Tax (GST) to 7 per cent, citing uncertainties surrounding the impact of tariffs imposed by the United States government.

According to SDP, a reduction in GST "will go a long way to help Singaporeans cope with the effects of rising costs that may develop with the imposition of the tariffs".

Concurrently, it will also "help to boost domestic consumption and keep the cost of living from rising further", the party said in an Apr. 9 media release. It also shared its statement on Facebook.

On Apr. 2 (Washington D.C. time), U.S. president Donald Trump announced that his administration would be imposing a slew of tariffs on imports from other countries, including its allies and trade partners in the European Union, East Asia, and Southeast Asia.

Singapore is one of the 11 countries that was hit with a baseline tariff of 10 per cent, instead of the higher "reciprocal" tariffs.

Also called for reduction in other prices

Besides calling for a reduction in GST, SDP also urged the government to "reduce prices and fees that it has increased over the last few years to pre-Covid-19 levels".

According to the party, these included water rates, bus and MRT fares, and Electronic Road Pricing (ERP) fees.

SDP added that its position above is "consistent with [its] repeated calls to reduce the cost of living for Singaporeans".

"The action is timely as it is the first of a series of measures to restructure our economy to level up society and narrow income and wealth inequality in Singapore," read the media release.

Government's response to U.S. tariffs

At the end of its media release, SDP said that Singapore will be able to be resolute and united in holding its own in this troubled world "only when people who call this country home are adequately and meaningfully supported".

Here, the party was making a reference to Prime Minister Lawrence Wong's remarks in a YouTube video on Apr. 4, in which he urged Singaporeans to be mentally prepared for a more "arbitrary, protectionist, and dangerous" world following U.S.' imposition of tariffs.

In the video, PM Wong also stated that the tariffs, along with the uncertainty of what other countries may do next, would weigh heavily on the global economy, causing international trade and investment to suffer.

Compared to other countries, Singapore will take a bigger hit because of its heavy reliance on trade, added PM Wong.

Nevertheless, he expressed his confidence in Singapore in navigating the "harsh reality" of the world today:

"We will stay vigilant. We will build up our capabilities. We will strengthen our network of partnerships with like-minded countries. We are more ready than many other countries, with our reserves, our cohesion, and our resolve."

During his ministerial statement in Parliament on Apr. 8, PM Wong also announced that the government would be setting up a new taskforce to help businesses and workers navigate the tariffs better.

The taskforce, chaired by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, will aim to address the immediate uncertainties resulting from the tariffs and help Singaporeans better adapt to the new economic environment.

Members of the government have said that it stands ready to act to help Singaporeans if needed.

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Top images via Canva & Singapore Democratic Party/Facebook