The government has announced plans to refund S$7.5 million in wrongly charged GST over the last five years
The government has announced plans to refund S$7.5 million in wrongly charged Goods and Services Tax (GST) over the last five years. The refund comes after an extensive review revealed errors in the application of GST in various sectors. The authorities are committed to rectifying these mistakes promptly, ensuring that businesses and individuals affected by the overcharges receive the refunds they are entitled to.
The review process identified instances where GST was inaccurately applied, leading to overpayments by businesses and consumers. The government has acknowledged the importance of maintaining the integrity of the tax system and is taking proactive measures to address these discrepancies. The refund process will be streamlined to minimize any inconvenience to those who have been impacted.
Businesses and individuals who believe they may have been affected by the overcharged GST are encouraged to review their records and contact the relevant authorities to facilitate the refund process. The government is committed to transparency and accountability in tax administration, and this initiative underscores its dedication to rectifying errors promptly and ensuring a fair and just taxation system for all.
The 18 government fees and the GST wrongly charged per transaction
Council for Estate Agencies
1. Application fee for Estate Agent licence: S$7
2. Application fee for Real Estate Salesperson registration: S$3.50
Housing and Development Board
3. Administrative fees for renting out of HDB flat or bedroom: ~S$1
4. Administrative fees for compulsory acquisition of flat: S$15
Land Transport Authority
5. Class 2 Bus Service Licence amendment fee: S$0.70
6. Conversion fee from private-hire vocational licence to taxi driver vocational licence: S$2.10
7. Export Processing Zone entry fee: S$2.50
8. Application fee for autonomous vehicle authorisation: S$2.40
9. Application fee to keep deregistered/unregistered vehicles: S$42.70
10. Application fee to change garage address of Keeping Scheme vehicles: S$12.20
11. Application fee for Special Purpose Licence: S$20.10
12. Application fee for change of vehicle particulars requiring LTA’s approval: S$4.40
13. Application and extension fees for vehicle accessory approval: S$15
Office of the Public Guardian
14. Application fee for registration for professional deputies: S$36
15. Lasting Power of Attorney application fee: S$9.70
Singapore Food Agency
16. Application fee for licence to operate a food processing establishment: S$13
Urban Redevelopment Authority
17. Processing fee to obtain planning permission for development works: Variable, majority ranges from S$10 to S$1,500
18. Processing fee for lodgment of documents for development works: Variable, from S$10 to S$84
WHO IS AFFECTED AND HOW REFUNDS WILL BE MADE
The six agencies administer 18 fees that are applicable to both individuals and businesses alike. These fees encompass approximately 200,000 transactions each year, with the majority (90%) being carried out by individuals, while the remaining transactions involve businesses. Notably, fees related to the Housing and Development Board (HDB) contribute to more than 70% of the overall transactions.
The overall transaction figure encompasses dealings with GST-registered entities, which remain unaffected as they can offset the charges as input tax. Refunds are exclusively applicable to individuals and non-GST registered entities that lack the option to claim input tax.
The Ministry of Finance (MOF) estimates the annual erroneously charged GST for this group at approximately S$1.5 million, with the majority of transactions incurring GST of S$5 or less per transaction. The government has committed to reimbursing the improperly charged GST along with interest, ensuring a seamless refund process. Affected taxpayers will be contacted by the six agencies starting March, utilizing available records dating back to January 1, 2019.
