Woman calculates cost of laundry detergent, wonders why price increase more than GST hike

Submitted by Stomper Fong

Click here to submit a story or submit it to our WhatsApp.

As Singaporeans welcomed the new year last week, what wasn't so welcomed was the goods and services tax (GST) increase from 8 per cent to 9 per cent.

On the day after New Year's, Stomper Fong went to the supermarket at 10am and noticed something.

"I noticed the Top laundry liquid, the price was $8.45 for two and good till Jan 12," recounted the Stomper.

She checked the price she paid for the same two items in October last year and it was only $8.05.

The Stomper calculated that the price with the new GST rate should be $8.125 and not $8.45.

"Why is it more by $0.325?" she asked.

"And the stock arrived in 2023. No excuse of higher logistics cost, right?"

This is the second GST hike in a year. The rate was raised from 7 per cent to 8 per cent at the beginning of 2023.

To help Singaporeans cope with the impact of the GST increase, the Government enhanced the Assurance Package to over $10 billion in September 2023. The enhancement accounted for the higher inflation and provided additional support to Singaporeans to address cost-of-living concerns.

The Assurance Package continues to offset additional GST expenses for majority of Singaporean households for at least 5 years. For lower-income households, the Assurance Package can cover additional GST expenses for around 10 years. 

Beyond the Assurance Package, eligible Singaporean households, especially the lower to middle income families, will also continue to benefit from the permanent GST Voucher Scheme and the absorption of GST for publicly subsidised education and healthcare.