 Each increase was accompanied by an offset package that was designed to make the average Singaporean household overall better off, even after accounting for the additional costs imposed by the increase in GST rates.Direct tax rates were also reduced correspondingly.On 15 February 2007 (Budget Day), then Second Finance Minister Tharman Shanmugaratnam announced that the GST rate would be increased to 7% with effect from 1 July 2007.