The Singapore Democratic Party (SDP) has called on the Government to reduce the Goods and Services Tax (GST) from 9% to 7%, citing the economic uncertainty sparked by new US tariffs and the risk of rising living costs.
In a statement issued on 9 April 2025, the party urged immediate action to support Singaporeans in the wake of trade disruptions caused by sweeping tariff measures announced by US President Donald Trump.
The tariffs, which include a 10% duty on Singapore’s exports, came into effect on 9 April.
The SDP stated that reducing the GST would “go a long way” in helping households cope with rising prices, which may follow as businesses face higher operating costs and pass them on to consumers.
The party also called for the reversal of several Government-administered fee hikes introduced over recent years. These include increases in water rates, bus and MRT fares, and Electronic Road Pricing (ERP) fees.
“To this end, the Government must also reduce prices and fees that it has increased over the last few years to pre-Covid levels,” the statement said.
According to the SDP, the proposed tax and price reductions are part of a broader strategy to manage the cost of living and provide immediate relief to Singaporeans, especially in the face of external economic shocks.
The party linked its proposals to longstanding positions it has taken on economic equity and affordability. It said that the latest call is consistent with its past advocacy to reduce the financial burden on ordinary Singaporeans.
“The call for the reduction in GST and other prices at this time is consistent with the SDP’s repeated calls to reduce the cost of living for Singaporeans,” the statement said.
The SDP also framed the proposal as the first in a series of measures to restructure Singapore’s economy. According to the party, its broader aim is to level up society and reduce income and wealth inequality.
“Singapore will be able to be resolute and united in holding its own in this troubled world only when the people who call this country home are adequately and meaningfully supported,” the statement added.
While the SDP did not specify how the GST cut or fee reversals would be financed, its statement focused on the need for immediate action to protect households from the knock-on effects of a volatile global trade environment.
In a ministerial address to Parliament on 8 April, Prime Minister Lawrence Wong acknowledged the risk of slower growth and cost pressures following the US tariff decision, and outlined a series of relief measures under Budget 2025, including vouchers and rebates for vulnerable groups.
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