SINGAPORE: The committee set up to ensure businesses do not raise prices under the pretext of an upcoming Goods and Services Tax (GST) hike will focus on everyday items commonly used or consumed by Singaporean households.
These include basic food items such as eggs, chicken, vegetables and meals at hawker centres and coffee shops, as well as non-food essentials such as household items.
The Anti-Profiteering Committee, first announced by Finance Minister Huang Xuncai in his Budget speech last month, reconvened and held its first meeting on Wednesday (March 16).
The committee is chaired by Minister of Trade and Industry Lau Yan Ling, and its other 12 members include business leaders, representatives of chambers of commerce and grassroots organisations, and MPs.
First established after the introduction of GST in Singapore in 1994, the committee was also reconvened during previous rounds of GST hikes in 2003 and 2007.
Singapore will increase the GST rate from 7% to 9% in two steps, with the first increase to 8% taking place on January 1, 2023. The second increase to 9% will begin on January 1, 2024.
“To address concerns that some wrong businesses may use the GST increase as a cover to raise prices, we support the Anti-Profiteering Commission before actually increasing the GST,” Ms Liu said.
“The committee’s role is to review and investigate feedback on unreasonable price increases for essential products and services under the pretext of GST hikes.”
Members of the public who wish to provide feedback on “unreasonable price increases” through the Commission’s official website – www.cap.gov.sg from April 1. The required information will include business details as well as specific products and price increases.
All feedback submitted through the site will be reviewed and further investigated if necessary, the committee said in a press release.
After reviewing and investigating the relevant feedback, 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 commission will hire businesses to find the reasons for the price increase and evaluate the explanations provided to determine whether it constitutes profiteering. It said it could “enable public wrongful businesses seeking profiteering under the pretext of GST hikes”.
Committee members also acknowledged the pressure businesses face amid global supply chain disruptions and energy costs. They urged businesses to “be transparent about prices and not to misrepresent the reasons for price increases as this would mislead consumers”.
The committee reiterated that it is unacceptable for businesses to use the GST hike as a justification for raising prices prior to implementation.
It is also unacceptable for businesses to increase prices beyond the GST increase on the grounds of GST after implementation.
In addition to the chairman, Ms. Liu, the 12 members of the Anti-Profiteering Committee are:
- Mr R Dhinakaran, President, Singapore Retailers Association
- Mr. Hong Baoxuan, Vice Chairman of Fuzhou Coffee Restaurant Association
- Mr Andrew Kwan, President of Singapore Restaurant Association
- Mr Lam Yik Wing, Chief Executive Officer, Singapore Business Federation
- Mr. Lim Hock Chi, President of Sheng Siong Group
- Mr Loh Wee Lee, CEO of Lazada Singapore
- Ms Hazel Poa, MP for Non-Constituency
- Mr Seah Kian Peng, MP and CEO of NTUC FairPrice Group
- Ms. Amatul Jameel Suhani, Chairman of the Malay Activities Executive Committee of the People’s Association
- Mr David Tan, President of Singapore Food Manufacturers Association
- Mr Yeo Hiang Meng, President of Singapore Chamber of Commerce
- Mr. Melvin Yong, Member of Parliament of Singapore and President of Consumers Association
