There has been a proposed increase in the goods and services tax, from the initial 5% to 7% from the 1st of July.
And this is going to happen at one go, not in steps like the previous increase.
Although an increase of 2% does not seem much to us for the time being, we will be able to feel the effects of this increase in the long run. Just take a $100 purchase for example. There will be an increase in price of $2 with the increase of 2% in GST.
I feel that the worse part of this increase is the fact that it applies to everything, be it luxury items or daily necessities. Everyday spending will be affected and those families that cannot cope with this increase would be the hardest hit.
The government has increased the GST in order to reduce corporate tax. This was a measure done to attract companies to invest in Singapore. In doing so, they hope to develop Singapore's economy.
But doing this at the expense of Singaporeans? I do not agree.
However, the only suggestion that I have found to be more agreeable is to not increase the GST on essential goods (rice, salt, sugar, edible oil, soya sauce, vegetables, flour and fish). It is only logical, in my opinion, to instead increase the tax that people have to pay for luxury goods (such as shoes and bags). Why should the people of Singapore be taxed more for their daily needs?
Looking back at that suggestion, I find a major loophole. If these people are able to buy these luxury goods, nothing is stopping them from buying these goods from overseas where the tax is lower. After all, budget airlines do provide cheap air flights to nearby countries. The GST increase on these goods would therefore be redundant and the amount earned from the GST would not be enough for the government's social spending.
I think that the government's proposed offsets for this increase are fair in that sense for the time being. But the GST increase will be permanent and will not decrease. Singaporeans still will spend more than the offsets in the long run.
According to the article, everyone but the poorer people will be affected. I agree with this statement to a small extent. I feel that the rich will not be that affected as well as the increase would not be that significant to them. The people that would suffer most would be the middle class Singaporeans as their spending on necessities is a large percentage of what they earn.
With that, I end off with this. The government has put a lot of planning into the GST hike and there must be reasons for that. Whether or not I agree with these reasons, it is only my opinion, and there is nothing I can do about it. Well, we'll see how this hike affects Singapore then!
And this is going to happen at one go, not in steps like the previous increase.
Although an increase of 2% does not seem much to us for the time being, we will be able to feel the effects of this increase in the long run. Just take a $100 purchase for example. There will be an increase in price of $2 with the increase of 2% in GST.
I feel that the worse part of this increase is the fact that it applies to everything, be it luxury items or daily necessities. Everyday spending will be affected and those families that cannot cope with this increase would be the hardest hit.
The government has increased the GST in order to reduce corporate tax. This was a measure done to attract companies to invest in Singapore. In doing so, they hope to develop Singapore's economy.
But doing this at the expense of Singaporeans? I do not agree.
However, the only suggestion that I have found to be more agreeable is to not increase the GST on essential goods (rice, salt, sugar, edible oil, soya sauce, vegetables, flour and fish). It is only logical, in my opinion, to instead increase the tax that people have to pay for luxury goods (such as shoes and bags). Why should the people of Singapore be taxed more for their daily needs?
Looking back at that suggestion, I find a major loophole. If these people are able to buy these luxury goods, nothing is stopping them from buying these goods from overseas where the tax is lower. After all, budget airlines do provide cheap air flights to nearby countries. The GST increase on these goods would therefore be redundant and the amount earned from the GST would not be enough for the government's social spending.
I think that the government's proposed offsets for this increase are fair in that sense for the time being. But the GST increase will be permanent and will not decrease. Singaporeans still will spend more than the offsets in the long run.
According to the article, everyone but the poorer people will be affected. I agree with this statement to a small extent. I feel that the rich will not be that affected as well as the increase would not be that significant to them. The people that would suffer most would be the middle class Singaporeans as their spending on necessities is a large percentage of what they earn.
With that, I end off with this. The government has put a lot of planning into the GST hike and there must be reasons for that. Whether or not I agree with these reasons, it is only my opinion, and there is nothing I can do about it. Well, we'll see how this hike affects Singapore then!
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