Overview
- Parliament was told the FY2025 surplus is now projected at S$15.1 billion, more than double the earlier S$6.8 billion estimate, with a bumper crop of corporate taxes cited as a key driver.
- Lawrence Wong said frequent upside variances reflect volatile external conditions and stressed that projections are based on the best data for a small, open economy.
- He maintained the 7 to 9 per cent GST hike funds permanent healthcare needs from an ageing population and remains necessary despite the revenue windfall.
- Extra takings expected from the global BEPS 15 per cent minimum tax from 2027 will strengthen finances but will not replace the GST’s structural role.
- Wong rejected raising the Net Investment Returns Contribution cap above 50 per cent on intergenerational equity grounds as Workers’ Party MPs pressed concerns over repeated underestimates and the timing of tax hikes.