Mr Pritam Singh (Aljunied): Chairman, the registration threshold of $1 million for the Goods and Services Tax (GST) has been in place since 1994. The threshold works, for example, to exempt some small and medium enterprises (SMEs), such as hawkers and retail shops in our neighbourhoods. It also helps avoid incurring additional costs to comply with GST accounting and collection requirements. Almost 30 years later, this figure of $1 million remains in place.
In an earlier Parliamentary Question to MOF on this matter, it replied that the Ministry would continue to assess the appropriateness of this threshold as part of its regular policy reviews. Can the Ministry share the factors that it considers with regard to the appropriateness of the $1 million registration threshold for GST and why it has not been minded to raise this threshold, particularly in view of inflation?
Separately, are there plans to further simplify the compliance costs of GST registration, particularly for small businesses?
Ministry of Finance
28 February 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2345
Office of the Leader of the Opposition 