Some have argued that there are alternatives to raising GST, such as raising income tax.
The Government has considered all these options. We announced that personal income tax for the top marginal rate will be raised from 22% to 24% from YA2024. This will bring an additional $170 million in taxes every year. In comparison, the GST increase will contribute $3.5 billion more to our revenue every year.
This means that in order to raise enough revenue to replace the GST increase, a broader group of income earners will have to pay higher personal income tax.
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