singaporeans to celebrate increase in GST!
Lower Income Singaporeans can celebrate rise in GST! The main reason for this increase in GST is to help the lower income Singaporeans, to close the income gap, to make their lives better. For closing the income gap, this can be simply dismissed. It is hardly a drop in the ocean. Forget it. There are 330,000 Singaporeans earning less than $1500 a month, bearly making ends meet. I believe this is the group that will be helped most. There should be better off because of the GST. This is the first time that some Singaporeans, or the lower income Singaporeans can celebrate on a rise in GST. How can they benefit and be better off? Assuming they spend every cent they earned, all $1500, which is very likely, a 2% increase means they will need to pay $30 more per month on their consumption. All things being equal, the govt needs to reimburse them $30 just to break even. For them to benefit from the GST increase, the sum to be given to them must be more than $30, maybe $50. This is hardly going to make a difference to their lives as money is hardly enough. Most are living on a monthly deficit. A more decent sum should be $100 a month. This may help them a little to cover some of the debt or things they have been skimping on. At $100 pm for 330,000 Singaporeans, this will work out to be $1200 x 330,000 or $396 million annually for as long as the 2% GST is in force. For the GST can only go away if it is cut. If not, they will have to bear the burden of this increase for the rest of their lives, an increase to make their lives better. The problem is the lower middle income group, maybe another 500,000 Singaporeans in this category. Say they be given the same amount, that will come to $600 million. If the total collection is $1.5 billion, there will still be a surplus of $500 million to go around. Now, will the lower income and lower middle income benefit from this GST increase? This just sounds too good to be true. What is the catch?