Myth 181 - Low taxes
Our income tax has been lowered quite substantially. Estate Duty has been removed. Corporate taxes also lowered. And we have a free port where many things are tax exempted. Singaporeans must be paying the lowest tax in the world. Very true, for the very rich. The richer you are, the lower you are taxed unless you buy that yacht or that bungalow in the sky. On the other hand there are many kinds of 'taxes' that Singaporeans are paying. CPF, Medisave, CPF Life, Minimum Sum are all taxes in different guises. Basically they take your money away, with a promise of returning them some time in the future. Even the choice of hospital wards is a kind of compulsory choice to pay. Then we have taxes on cars, road tax, road usage tax called ERPs, petrol, COEs, TV and Radio Licences and all kinds of licences, Consumption Taxes on utilities, taxes to teach you and remind you water is precious, contributions to compulsory social services like CDAC, Mendaki, Sinda, and the all pervasive and comprehensive GST that go on top of all the purchases, including those already taxed, like cars, essential services, petrols, and whatever. Is it really true that Singapore is a tax haven? For corporations and doing business, perhaps. For the people, what is the absolute amount of tax that the people are paying vis a vis say UK, US and Australia or even Malaysia?