Singapore is hiking its sales tax, but not until 2021 or later

SINGAPORE (Feb 20): Singapore said its sales tax will rise to 9% from 7%, but the change will only come "sometime" between 2021 and 2025, making it likely that the increase would kick in after the city-state's next general election.

Instead of getting a GST hike soon, Singaporeans aged 21 and above will get a "hong bao", or Lunar New Year red packet, as Finance Minister Heng Swee Keat announced a "one-off" bonus in 2018 of up to $300, depending on their income.

The bonus comes after Singapore's trade-reliant economy grew 3.6% in 2017, its best pace in three years.

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