GE2025: Instead of GST hikes, how would your party fund the growing needs of Singaporeans?

Key Concepts:

GST hikes, cost of living, housing affordability, resale prices, permanent residents (PRs), HDB (Housing Development Board), BTO (Build-To-Order) flats, EP (Employment Pass) levy, PSB (Progress Singapore Party), Affordable Home Scheme (AHS), land costs, past reserves, tax ecosystem, wealth tax, tiered utility pricing.

1. Concerns Regarding GST Hikes and Cost of Living:

The speaker expresses concern that the GST hikes were implemented during a period of high inflation (6% in 2022), placing a significant burden on Singaporean families. The speaker argues that these hikes were the "wrong tool used at the wrong time." The primary concern is the need to reduce the cost of living, particularly the cost of housing.

2. Proposal to Address Housing Affordability:

• Stopping PRs from Buying HDB Resale Flats: The speaker proposes stopping permanent residents (PRs) from buying HDB resale flats. The argument is that PRs are driving up resale prices, which in turn increases BTO prices.
• Introducing an EP Levy: A modest EP levy of $1,200 per month is proposed on EP holders. The stated goal is to level the playing field between Singaporean and foreign workers.
• PSB's Affordable Home Scheme (AHS): Under the PSB's AHS, HDB will no longer need to pay land costs used for BTOs into the past reserves. This aims to eliminate a large part of HDB's deficit arising from subsidies to buyers. The speaker reassures that the AHS will not cause a crash in the resale market.

3. Taxation and Wealth Distribution:

The speaker acknowledges that taxes are a key source of revenue and that taxation needs to be examined. However, the speaker questions who the taxes are aimed at, suggesting a perception that ordinary Singaporeans are disproportionately burdened compared to the wealthy ("billionaire class") and big companies. The speaker implies that wealth is not taxed enough.

4. Tiered Utility Pricing:

The speaker proposes tiered utility pricing. This system would ensure that Singaporeans who use less utilities, particularly those from smaller households, pay a lower rate. This is presented as a way to incentivize socially conscious behavior and relieve financial pressure on smaller households.

5. Competitiveness and Tax Ecosystem:

The speaker agrees with the PAP government that Singapore's competitiveness should not be eroded. The speaker believes that the tax ecosystem should ensure competitiveness.

6. Logical Connections:

The speaker connects the GST hikes to the broader issue of cost of living, particularly housing affordability. The proposed solutions, such as restricting PR purchases of resale flats and the AHS, are presented as direct responses to the perceived drivers of high housing costs. The discussion of taxation links to the idea of fair distribution of the economic burden, with the speaker suggesting a shift towards taxing wealth more heavily. The tiered utility pricing is presented as a separate but related measure to alleviate financial pressure on smaller households.

7. Synthesis/Conclusion:

The speaker argues that the GST hikes were poorly timed and have negatively impacted Singaporean families. The proposals focus on addressing housing affordability through measures targeting PRs, land costs, and EP holders. The speaker also advocates for a re-evaluation of the tax system to ensure a fairer distribution of the tax burden, potentially shifting towards greater taxation of wealth. Finally, the tiered utility pricing is presented as a way to incentivize responsible consumption and provide relief to smaller households.