 On the recommendation of the 1986 Economic Committee, Singapore's government decided that it needed to shift from direct to indirect taxes, to maintain its international competitiveness in attracting investments, and to sustain its economic growth to create well-paying jobs for Singaporeans.GST was implemented at a single rate of 3% on 1 April 1994, with an assurance that it would not be raised for at least five years.To cushion the impact of GST on Singaporean households, an offset package was also introduced.