A shopper looking at the Taobao e-commerce website. (File photo: Tang See Kit)
SINGAPORE: The Goods and Services Tax (GST) will be imposed on imported low-value goods from 2023, Deputy Prime Minister Heng Swee Keat said in his Budget speech on Tuesday (Feb 16).
This will apply to goods imported via air or post that are valued up to and including the current GST import relief threshold of S$400. These goods are currently not subject to GST to facilitate clearance at the border.
GST will also be imposed on business-to-consumer (B2C) imported non-digital services, which refer to services supplied over the Internet or other electronic networks that require human intervention.
This includes live interactions with overseas providers of educational learning, fitness training, counselling and telemedicine.
The changes will “ensure a level playing field for our local businesses to compete effectively”, Mr Heng said on Tuesday, noting that this is one aspect of a fair and resilient tax system.
The changes are also being introduced against the backdrop of the growing popularity of online shopping, including from overseas suppliers.
Full story at Channel News Asia