7/25/2019

GST hike will not increase cost of living

'The Ministry of Finance has countered a student’s view that the impending Goods and Services Tax (GST) hike will increase the cost of consumer goods and further disadvantage those who earn lower incomes.

During his Budget speech last year, Finance Minister Heng Swee Keat announced that the GST will increase by two per cent. This tax hike will raise the GST from the current seven per cent to nine per cent and will be implemented sometime between 2021 and 2025, in a progressive way.
21-year-old Marcus Aw Chen Feng, an undergraduate student, has asserted that the impending GST hike can “negatively affect economic growth” and further disadvantage the needy....'

The above is posted in theindependent.sg with the title 'Finance Ministry counters student’s view that GST hike will increase the cost of goods and disadvantage the needy'. It asserted that MOF counters the student's view which I think is incorrect for two reasons. 

First, GST hike will definitely not lead to higher cost of living in Singapore. This has always been the case since the first hike and will always be the case, and this case would not be different. This is my personal view. Anyone got data to prove otherwise? In fact GST is always to help the poor and is always a good thing in exceptional Singapore. I can't say this about other countries.

My second point is drawn from the very well crafted reply by MOF. Never did they said anything about hike or no hike in cost of living in its reply. So they could also be admitting that there would be a hike in cost of living without saying no to it. But their reply suggested that the hike is good, meant to help the poor as before. So they are not countering the student's view and it is wrong to say that they were saying otherwise.  Read on.

'In response to Marcus’ letter, MOF’s director of Corporate Communications Lim Yuin Chien asserted that the GST that is collected will “support public spending that benefits Singaporeans.”
In his own forum letter published by the Straits Times, Lim reiterated Minister Heng’s reasons for the GST hike – that it is necessary to support rising expenditure in caring for an ageing population, keeping Singapore safe from security threats, and investing in early childhood education.

The MOF representative added that the Government will “fully absorb GST on subsidised education and subsidised healthcare” for lower-income households and will continue implementing the GST Voucher Scheme “to defray costs for lower-income households and seniors.”'

See, I am right in my reading of the MOF reply, right?

37 comments:

Anonymous said...

The GST is a very smart scheme by the G. It seems like "rob the rich to subsidize the poor" but ultimately the one that gains the most is the G. Again, their motto what's wrong with collecting more monies applies, no doubt about it unless some beings from the upper world can come down to change a better sys than tis one..

Anonymous said...

For 10+ years I did not have to pay income tax before gst. Now I have to pay tax when ever I buy anything. How can conclude that gst is to help the poor? I assume that gst is to help the rich to pay less income tax.

Unknown said...
This comment has been removed by the author.
Anonymous said...

Curse the 69.9% !

Ⓜatilah $ingapura⚠️ said...

@ Comedy in full swing:

This reminbds me of former Aussie PM John Howard. Whilst campaigning for one GE he said he (i.e. the government he leads) would "NEVER EVER introduce a GST".

Sekali, he won. Then he says taht the cuntry needs tax reform. The fact thsat the voters voted he and his Liberal Party into office was "the peopleos MANDATE FOR A GST".

Every Aussie taxpayer's backside kena play by the virtuoso maestro John Howard. Well, played Sir...the cuntry gets the govt they deserve! πŸ€‘

Ah...Singapore. 9% GST, playing "catch up" with Oz. Keep going, you're doing great, we've had the GST for 19 years now.

Aussie GST replaced a whole heap of taxes so many goods actually got CHEAPER. For e.g. tax on photogear was 32.5%, plus custom's "uplift" of 20% if you imported those goods yourself...netting the govt a windfall of over 50% in excise on your camera, simply for doing absolutely nothing. The application of GST meant all these stupid high excies and duties DISAPPEARED.

In Singaporeos case...raising the GST without removing any already existing IMPOSTS will almost definitely RAISE the cost of living.

Yes, needy people will be adversely affected. However here's the cold reality: NO ECONOMY IN THE HISTORY OF THE WORLD IS DESIGNED WITH "NEEDY PEOPLE" IN MIND unless it is to offer them jobs at piss-poor rates so that foreign companies can come over and exploit the cheap labour for their record profits and healthy share prices.

Capitslism is a game where all players want to be paid. No one is ever "paid enough", which keeps the competition keen, and fosters cooperation when cooperation makes MORE MONEY than competion.

Capitalism is also the place where governments MALE MONEY BY TAKING IT from the people who make the money. The govt does FUCK ALL to earn the money...they don't have to, they can just HELP THEMSELVES, LEGALLY to your shit, anytime for any reason and there nothing you can do except leave, or stop producing.

Like it or not, capitalism will dominate for one simple reason: Human's like to OWN STUFF.

Most people don't give up worldly pleasures and materialism to go sit on top of a mountain in vows of silence and poverty. Only bloody fools do that. πŸ€£πŸ˜‚

Anonymous said...

I am a retiree and I spent 3000 plus a month for me and Wife to survive that is 36 to 40 k a year. With 9% gst, I would be paying 3600 in taxes though I have no income. Knn 😰

Anonymous said...

GST is good for Singaporeans. Helps the needy by using the GST for subsidies. Great. Tax the rich to help the needy. What is so wrong in that?

Anonymous said...

Hi

Don't waste time lah!

Whether it is going to 9% or more next time, the masses will DIE-DIE vote for them!

The masses at most will only kpkb kpkb and more kpkbsssss!

But when come to voting....pap, with their EYES opened!

This is Sg lah! Long long long ago already like that lia0!

Yes! I m repeating!

Hahaha.........

Anonymous said...

With GST at 7%, 70% Sinkies love the Pay And Pay.

With GST increased to 9%, 90% Sinkies will vote for Pay And Pay (the Millionaire Ministers).

Virgo 49 said...

Tax the Rich and help the Poor?

More equitable system is the old traffic tax system.

Not GST. In.GST, everyone from birth to cradle pays GST. Rich or poor alike. The Wealthy will feel no pains pangs as they are Rich enough to absorb these 6 or 9%.

In the old systems, C&E imposed traffic duties on luxuxry goods that usually the Wealthy will spend more on them.
Our time, the C&E and Trade Dept has to have many staff to do classification and collection of duties.Now they just simplify and collected more revenues.

For example Motor Vehicles and petroleum products. Plus hotel cess and entertainments duties.

GST collections on all overall imports and thus less work than duties imposed on certain items.

Overall, the Revenue collected is many many times over the traffic duties on only certain items.

The VAT or Value Added Tax is applicable only for those high establishments like night spots and high end restaurants and hotels stays.

So these taxes on the Ones who wanted to spend on these are more equitable.

Matland scrapped their Socalled GST but applied another pull over the eyes of the electorate "VAT GST"

They applied this tax even in ordinarily retails shops and departments. Which comes BACK as GST. Should only applicable to high end establishments.

So, any Govt can bullshits that they scrapped this but implement that.

Chua Chin Leng aka redbean said...

Anonymous said...

I am a retiree and I spent 3000 plus a month for me and Wife to survive that is 36 to 40 k a year. With 9% gst, I would be paying 3600 in taxes though I have no income. Knn 😰
July 25, 2019 10:05 am

Good point. Retirees not working paying $3,600 in tax through GST!

Anonymous said...

Got an ad now Huawei hand phone offering $54 in celebration of Sinkieland 54th national day only for 3days starts tomorrow only for above 50yo for Sinkies &PR, woa so good, if every telcos help brings down the mobile phone price then the cost of living will reduce a bit low.

Anonymous said...

@All,

An increase of 7% gst to 9% is effectively just an increase of 1.87% (i.e. $1.07 to $1.09).

So all you need to do is to increase your earnings by 2% this year and you have beaten the gst increase.

This is just Pri school math.

Even if allowing for friction & profiteering, you're looking at 5%-10% increase in general prices.

So just ensure your earnings increase by 10% over the next 2-3 years and you'll maintain the same or higher purchasing power.

WSG
PS: Officially I'm jobless with zero income, so I'm looking forward to the bigger GST rebate ang baos LOL!!! Thank you sinkie taxpayers!!

Chua Chin Leng aka redbean said...

GST should be renamed C2C Tax.

Cradle to Coffin Tax.

Chua Chin Leng aka redbean said...

WSG, which school did you go to to learn your maths?

7% to 9%, the 2% increase is an increase of 28.6% from what you were paying in tax.

Virgo 49 said...

Mr RB..wow so more WSG is an expurt in stocks and shares.

Economics Master and Mr RB corrected his mistake.

Or maybe an increase of 1.87% as according to him is chicken feed.

Cheers

Virgo 49 said...

Wow, this Gentleman Retiree who spends $3000 a month needed 1 million to retire.

I only spend 500 per month excluding lotteries and Genting trips.

Cheers

Anonymous said...

28.6% tax revenue increase to fund new airport, Tuas port, etc etc for new citizens' benefit as original Sinkies dwindle ...

Virgo 49 said...

The worse id that those WHO are in employ and have more than 24 or 28 annual incomes got no GST rebates.

Should be equitable and refunded to all.

Anonymous said...

@RB,

Playing with stats I see LOL!!!

This year your boss gives you 3% salary increment, but he'll say it's actually 150% hike because last year was only 2% increment.

Yesterday my War Stocks went up 1% --- I can also say I'm achieving annualised compounded performance of 3678%. Waaahh orgasm siah!!!

Luckily for your readers who have brains, I engage in Real World $$$$$$$$$$$$$$$$. What is important is the ACTUAL AMOUNTS SPENT.

Primary School Question:-
Today a price tag is $10,700. Tomorrow it becomes $10,900.

What is the percent increase?

RB: I know I know!!! It's 28.6%!!!

Now I know why DBS wants to get rid of you LOL!!!

imho said...

Elites screwed people everywhere but people still voted for them.

Anonymous said...

Hi

It is great to tcss tcss and kpkb kpkb here.

As I said before Sg is already like that long long long long long time ago liao!

The masses will DIE-DIE DIE-DIE DIE-DIE vote for pap whether it is going to be 9% or more in the future!

Anyway it is very very very very good that we can still tcssssss and kpkbsssss here!

YamSeng!

Anonymous said...

Increase your tax is for your benefit ; influx of cheaper foreign workers is to create jobs for you ; hike in CBD ERP is to help your business in CBD become more competitive, etc etc.

See! They urinate down your back but tell you it's raining !



Chua Chin Leng aka redbean said...

WSG, yes, stats is used by many to play a game that they want others to see.

Govt tax on GST was 7%. Now the tax is 9%, how much is the increase in percentage?

Eg, revenue from GST is $7, now $9, how many percent is the increase?

A 2% increase in this case would give the govt a 28.6% increase in tax revenue.

Not true?

Ⓜatilah $ingapura⚠️ said...

@ dedicated repeating dude---everyday speaks the truth, but idiots are still deaf and passive

>> The masses will DIE-DIE DIE-DIE DIE-DIE vote for pap whether it is going to be 9% or more in the future!
YamSeng!<<


I know right? That is why I continue to be 'long HOTEL Singapore" , because the Sheeple are predictable, and their Lord and Masters are also predictable. Do you know how DIFFICULT it is to find this type of predictability in the real world...and derive a "profit" from it?? . Almost impossible because any "edge" offered by "predictablity" is quickly accepted by everyone until no one has an edge anymore.

The GST hike hits after 2021. By that time we probably would have "been there, done that" with this "recession" everyone has been predicting.

So despite a 28% increase in taxation (RB's calculations---bigger number more impressive lah πŸ€“) I predict:

1. Luxury car sales UP
2. Consumer spending in general UP
3. Record attendance for concerts, festivals etc
4. Food industry will grow. Expensive restaurants fully booked out.
5. Flights in and out of Singapore will grow
6. In general, Capitalism will rule and make the place more and more AWESOME!
7. People will be wealthy and happy
8. Govt will collect plenty money

Die die Singapore has to eat well and shop for quality products. No one will think "28% increase in tax". Everyone will just cop the 2 bucks extra per 100 dollars and get on with life...making money, carousing at Karaokes, eating, shopping and grumbling on how terrible life in Singapore is. πŸ˜‚πŸ€£

Predictable lah. I like. I like SAFE BETS. 😝

Anonymous said...

Rb, think that u cud juz save ur time in educating others in Maths or Stats as these people r here to make fun, so juz ignore them..eh siah lah.

Anonymous said...

The PAP is eyeing to raise the GST to 9 percentage points from 7 percentage points, an increase of 28.6 percent, in coming months.

Anonymous said...

Hi all

Actually I was saying to myself why don't increase the gst to 12%. Only pain once in many many years.

Don't worry! Just do it!

Hahahahaha.

Anonymous said...

@RB, @All,

Thanks RB!! Now I know why I feel good about 28% increase in gst.

It's becoz I've been having 3600% increase in my War Stocks!!!! Wooohoooo!!!!

This increase in GST is like the increase in prices of D9 properties & increase in membership fees of good clubs --- it maintains quality & keeps out the losers LOL!!!

WSG

Ⓜatilah $ingapura⚠️ said...

@ WSG

>> This increase in GST is like the increase in prices of D9 properties & increase in membership fees of good clubs --- it maintains quality & keeps out the losers LOL!!! <<

Err, in theory yes. In reality...the sg.gov handed over one golf course from the Singapore Island Cuntree Club ($$$ membership...exclusive lah) to "the public", to be managed by fucking NTUC---the "pow ka liau" trade union of Singapore who has taxi service, insurance business, supermarkets...

Only in Singapore! Capitalism shakes hands with Communism! πŸ˜‚

Anonymous said...

@Matilah,

Haha!! By "good clubs" I was referring loosely to the happening & nice areas of S'pore.

Losers will gradually gravitate to the less nice and/or less safe areas.

Ultimate losers will have little choice but to spend most of their lives in M'sia or Batam. In fact this will be the only way for more & more Sinkies to retire in the future.

As for golf courses & country clubs, I'd wish the govt will just tear all of them down. They're a fucking waste of space & opportunity costs. Which I think the SG govt eventually will, as millennials the world over are spurning golf & younger 4G and 5G govt take over.

I don't mind playing golf, but not in this climate!! Maybe if they specify speedos & bikinis as compulsory attire, with plenty of suntan lotion. But even then I'd probably try it 2 or 3 times at most.

Ⓜatilah $ingapura⚠️ said...

@ WSG

I live in a city of Gila Golfers, yet I myself don't play. I end up as the Ahmad Driver to visiting friends who come over to play.
My point on the SICC is people paid a lot of money for membership. But govt takes over one golf course. The number of gold courses remains unchanged, but now NTUC gets to manage one this time for the public to waste space, and water!

I just saw this on the wire:

@ Fuck the SGX!

Private Equity: Go Team! πŸ€‘πŸ€‘☑️πŸ’ͺπŸ‘

Singapore Braces for More Delistings Even After Rule Fix
https://www.bloomberg.com/news/articles/2019-07-24/singapore-braces-for-delistings-to-continue-even-after-rule-fix

As I was saying... Singapore, so predictable.

Anonymous said...

Just received from CPF tips for retirees - "7 ways to save money in your daily life"

1. Wait for sales and buy only what you need
2. Buy early bird tickets
3. Look for free parking
4. Turn dinner leftovers into work lunches
5. Save on utility bills - use the aircon only 2 to 4 hours, don't use whole night
6. Borrow books from the library instead of buying them
7. Switch from cable TV plans to internet streaming services

And BRAVO ! - the PAP gonna raise GST to 9% !!

Anonymous said...

water Abd electricity Abd petrol one month already 700 per month so how to live on 500 per month? As for WSG he is poor in math and need to be sodomized too.😬

Ⓜatilah $ingapura⚠️ said...

@ CPF

>> "7 ways to save money in your daily life" <<

The person who wrote this piece of shit should be arrested for impersonating a finance writer. "Free parking"? Knn. The amount you save on parking won't even be close to getting rid of your car lah!

Wait for sales, buy early bird tickets...nabay...

Cibai brain!

Ⓜatilah $ingapura⚠️ said...
This comment has been removed by the author.
Anonymous said...

Matilar u fucking rude idiot. U need to be sodomized lar😝😝😝