Singapore will raise its GST rate from 7 to 9 per cent in two steps, with the first increase to 8 per cent set to take place on Jan 1, 2023. The second increase to 9 per cent will kick in on Jan 1, 2024.
“To address concerns that some errant businesses may use the GST increase as a cover to raise price, we are standing up the Committee Against Profiteering ahead of the actual GST increase,” Ms Low said.
“The committee’s role is to review and investigate feedback on unjustified price increases of essential products and services that use the GST increase as an excuse.”
Members of public who wish to provide feedback on “unjustified price increases” can do so via the committee’s official website - www.cap.gov.sg - from Apr 1. Information required will include details of the business, as well as the specific product and price increase.
All feedback submitted through the website will be reviewed and further investigated if necessary, the committee said in a press release.
On reviewing and investigating relevant feedback, the committee members agreed on the need to work with partner agencies and organisations such as the Competition and Consumer Commission of Singapore, the People’s Association and the Consumers Association of Singapore.
The committee will engage businesses to find out the reasons for a price increase and evaluate the explanations provided, to determine if it constitutes profiteering. It may “make public errant businesses that seek to profiteer on the pretext of the rise in GST”, it said.
Members of the committee also acknowledged the pressure that businesses are facing amid global supply chain interruptions and energy cost concerns. They urged businesses to be “transparent with their prices and not misrepresent the reasons for any price increase as this will mislead consumers”.
The committee reiterated that it is not acceptable for businesses to use the GST increase as the reason for raising prices before the implementation.
Neither is it acceptable for a business to raise prices by more than the GST increase after the implementation while citing the GST as the reason.
Apart from chairperson Ms Low, the 12 members of the Committee Against Profiteering are:
- Mr R Dhinakaran, President of the Singapore Retailers Association
- Mr Hong Poh Hin, Vice-chairman of the Foochow Coffee Restaurants and Bar Merchants Association
- Mr Andrew Kwan, President of the Restaurant Association of Singapore
- Mr Lam Yi Young, CEO of the Singapore Business Federation
- Mr Lim Hock Chee, CEO of the Sheng Siong Group
- Mr Loh Wee Lee, CEO of Lazada Singapore
- Ms Hazel Poa, Non-Constituency Member of Parliament
- Mr Seah Kian Peng, Member of Parliament and Group CEO of NTUC FairPrice
- Mdm Amatul Jameel Suhani, Chairperson of the People’s Association Malay Activity Executive Committees Council
- Mr David Tan, President of the Singapore Food Manufacturers’ Association
- Mr Yeo Hiang Meng, President of The Federation of Merchants’ Associations, Singapore
- Mr Melvin Yong, Member of Parliament and President of the Consumers Association of Singapore
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“To address concerns that some errant businesses may use the GST increase as a cover to raise price, we are standing up the Committee Against Profiteering ahead of the actual GST increase,” Ms Low said.
“The committee’s role is to review and investigate feedback on unjustified price increases of essential products and services that use the GST increase as an excuse.”
Members of public who wish to provide feedback on “unjustified price increases” can do so via the committee’s official website - www.cap.gov.sg - from Apr 1. Information required will include details of the business, as well as the specific product and price increase.
All feedback submitted through the website will be reviewed and further investigated if necessary, the committee said in a press release.
On reviewing and investigating relevant feedback, the committee members agreed on the need to work with partner agencies and organisations such as the Competition and Consumer Commission of Singapore, the People’s Association and the Consumers Association of Singapore.
The committee will engage businesses to find out the reasons for a price increase and evaluate the explanations provided, to determine if it constitutes profiteering. It may “make public errant businesses that seek to profiteer on the pretext of the rise in GST”, it said.
Members of the committee also acknowledged the pressure that businesses are facing amid global supply chain interruptions and energy cost concerns. They urged businesses to be “transparent with their prices and not misrepresent the reasons for any price increase as this will mislead consumers”.
The committee reiterated that it is not acceptable for businesses to use the GST increase as the reason for raising prices before the implementation.
Neither is it acceptable for a business to raise prices by more than the GST increase after the implementation while citing the GST as the reason.
Apart from chairperson Ms Low, the 12 members of the Committee Against Profiteering are:
- Mr R Dhinakaran, President of the Singapore Retailers Association
- Mr Hong Poh Hin, Vice-chairman of the Foochow Coffee Restaurants and Bar Merchants Association
- Mr Andrew Kwan, President of the Restaurant Association of Singapore
- Mr Lam Yi Young, CEO of the Singapore Business Federation
- Mr Lim Hock Chee, CEO of the Sheng Siong Group
- Mr Loh Wee Lee, CEO of Lazada Singapore
- Ms Hazel Poa, Non-Constituency Member of Parliament
- Mr Seah Kian Peng, Member of Parliament and Group CEO of NTUC FairPrice
- Mdm Amatul Jameel Suhani, Chairperson of the People’s Association Malay Activity Executive Committees Council
- Mr David Tan, President of the Singapore Food Manufacturers’ Association
- Mr Yeo Hiang Meng, President of The Federation of Merchants’ Associations, Singapore
- Mr Melvin Yong, Member of Parliament and President of the Consumers Association of Singapore
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