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6/11/2007

Absorb GST - passing the buck

Fair Price, Cold Storage, Shop N Save and Shengxiong are absorbing the July GST increase, albeit for a few months. It would be nice if all the big shops absorb the GST increase altogether. Then the people can save some money from this increase. But can things be so simple. Once there is an increase in cost, the merchants will know what to do and finally the consumers will end up paying everything and more.

26 comments:

Anonymous said...

You are right, Prices have already been marked-up, so what's the big deal about absorbing GST.

Just like the shop that collected a fee for using NETS. Sure, you can stop them, but what can you do if they just increase the price, say by 5% and then put up a notice to say, OK, those who pay by CASH will enjoy a 2% cash discount. Nothing CASE can do about it.

Matilah_Singapura said...

I believe that some 'honest' merchants will absorb the GST in good faith, however to expect them to do so forever is crazy.

And using plastic as a bargaining tool (consumer leverage) is a small but wonderful aspect of the modern capitalist free-trader economy.

...however, there are some of us who never pay retail ;)

Anonymous said...

As redbean said, consumers will end up paying for all the cost increases, be it NETS, GST etc. Suffer the comsumers.

Abao said...

Absorbing the GST is nothing for them when they have already increased prices by 10% over the past week... Yesterday I went to a supermarket and the price of oil increased by 10%, regardless of brand...

redbean said...

as far as the consumers are concerned there is no running away. the 2%, depending on how many layers, will be translated to several times in increase of cost of goods and services.

and the buck will be pass down to the consumers. please do not ask the goods and service providers to absorb the increase. it never works. it will be factored in, one way or another.

no where to run.

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