Inaccurate to say retailers' were what WP suggested: GST discounts Chee Hong Tat

The decision by some supermarkets and retailers to temporarily absorb the recent 1 percentage point GST increase of their own accord is not the same as the Workers’ Party’s (WP) calls for the Government to exempt essential goods from the tax, said Senior Minister of State for Finance Chee Hong Tat.

- Anjali Raguraman

In a Jan 10 Facebook post, Mr Chee said it was factually inaccurate for WP MP Jamus Lim to claim that the discounts were what he and fellow Sengkang GRC MP He Ting Ru had earlier called for in Parliament.

Mr Chee was responding to a Jan 9 post by Associate Professor Lim, who noted that large retailers such as Giant, Changi Airport and FairPrice had decided to absorb the goods and services tax (GST) increase for essentials such as fresh food and personal care products.

Prof Lim wrote: “This was essentially an argument that He Ting Ru and I made in Parliament, but the idea was pooh-poohed as infeasible.”

That some retailers had chosen to do so was “demonstrable proof that it is not only possible, but something consumers want”.

“The decision by the Government to sidestep this commonsensical idea is, in my view, an abdication of leadership on the economy,” added Prof Lim.

In his rebuttal, Mr Chee said that what Prof Lim and Ms He had earlier proposed was for the Government to exempt what they deemed “essential goods” from GST.