Singapore cuts DF alcohol allowance; tightens GST
By Luke Barras-hill |
Singapore has reduced the *duty free alcohol concession for travellers entering the country from three litres to two litres, effective 1 April.
The move, announced yesterday by Minister of Finance Heng Swee Keat in the government’s budget statement for 2019, simultaneously lowers the *GST (goods and service tax) relief ceiling for imported tax free goods. This takes effect at 12:00am on 19 February. [See below images for detail. All credited to Government of Singapore].
Under the new rules, implemented in light of rising international travel volumes, those spending less than 48 hours outside the country will now receive tax breaks on goods valued up to $100, down from $150, while those travelling outside Singapore for more than 48 hours will receive concessions on purchases worth up to $500, down from $600.
GST EXPECTED TO RISE
Singapore’s GST currently stands at 7%, but this is expected to rise by two percentage points between 2021 to 2025 to ‘ensure our overall system of taxes and transfers remains progressive and fair’, the Minister said.
He added: “As we continue to invest in our economy, our home and our people, we will do so in a fiscally sustainable way. We will pursue a differentiated fiscal strategy. For investment in major, long-term infrastructure, the Government will study the option of borrowing to distribute the share of funding more equitably across generations.
“For recurrent spending, the fairer and more robust approach is to meet them through recurrent revenue. The tax system will thus be reviewed continually to ensure its resilience. In this regard, the GST import relief and alcohol duty free concession for travellers will be tightened.”
*Duty free allowance applies to travellers aged 18 and above spending more than 48 hours outside Singapore (excluding Malaysia) and purchases are for self-consumption only.
**GST applicable to Singapore permanent residents, citizens and tourists but not valid for crew members and holders of a work permit, employment pass, student pass, dependent’s pass or long-term pass issued by the government. Does not apply to intoxicating liquor or tobacco or goods imported for commercial purposes.
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