“Our findings show that higher GST rates have little impact on consumer expenditure and overall growth,” says Gan.
RHB Group's senior economist Barnabas Gan believes there is no need for Singapore to be worried about inflation risks despite higher goods and services tax (GST) rates, from 7% to 8% in 2023 and 9% in 2024.
Higher GST rates may support consumer prices but y-o-y impact will be washed out in the subsequent years, writes the economist.
