Are you ready for 7 million people on tiny Singapore?

[limlim]

pirate:

Oh, yeah. It's just a little bit heartless. I will say it again.

H E A R T L E S S

To each his own.

What is so difficult to go and stamp the passport for extension every month? cannot find their way around SG is it? cannot learn? cannot take leave? (oh wait.. are they supposed to be working?)

What a joke.

Ya I'm heartless..

[limlim]

JannettLee:

You bring up something very interesting and often overlooked. Now, come to think of it, who benefits from GST implementation?


It seems that the only beneficiary of GST implementation and top-tier income tax cut is the rich, since their income tax cut from 25% to 20%.

Now, you argue that the rich will pay more for GST, really? You assumed that if the rich earns $300k, they will spend $300k and pay $21k GST?
Ok, let's say the rich earn $1m a year. He saved $50k tax from income tax cut from 25% to 20%. In fact, the rich will never be able to fully spend what they earn, so let's say they only spend $240k a year on living expenses (which is already $20k per month and is quite a lot!). For $240k expenditure they now need to pay extra $16.8k for 7% GST. Now, isn't it obvious that the rich saved $50k income tax and get hit with only $16.8k GST tax and they are the biggest beneficiary?

Properties aside..

Let's say the rich wants to buy some luxury goods.. e.g. LV..

Most likely they buy a plane ticket go Europe on holiday and contribute to their economy and buy dozens of bags there than to pay GST here..

Of coz some things they will definitely kena GST (but the low & middle income always kena).. but they surely will find ways and means to avoid whenever possible..

Whereas the deduction in income tax is 100% sure \"earn\" one..

[3Boys]

limlim:

pirate:

Oh, yeah. It's just a little bit heartless. I will say it again.

H E A R T L E S S

To each his own.

What is so difficult to go and stamp the passport for extension every month? cannot find their way around SG is it? cannot learn? cannot take leave? (oh wait.. are they supposed to be working?)

What a joke.

Ya I'm heartless..

How will you feel if your company renews your contract on a month to month basis only?

Compared to this when the whole family is here, spouse, children, home.

How does one plan for the future when one does not even know if he will be in that country the following month. How does one sink roots, sign up for activities at the CC, book travel plans, commit to children's activities, be an active contributor to society? If it's just a matter of trooping down to get paper work done monthly, it's one thing, but this kind of uncertainty is excruciating.

And if you don't understand this, then yes, you are as you say you are.

[3Boys]

limlim:

JannettLee:

You bring up something very interesting and often overlooked. Now, come to think of it, who benefits from GST implementation?


It seems that the only beneficiary of GST implementation and top-tier income tax cut is the rich, since their income tax cut from 25% to 20%.

Now, you argue that the rich will pay more for GST, really? You assumed that if the rich earns $300k, they will spend $300k and pay $21k GST?
Ok, let's say the rich earn $1m a year. He saved $50k tax from income tax cut from 25% to 20%. In fact, the rich will never be able to fully spend what they earn, so let's say they only spend $240k a year on living expenses (which is already $20k per month and is quite a lot!). For $240k expenditure they now need to pay extra $16.8k for 7% GST. Now, isn't it obvious that the rich saved $50k income tax and get hit with only $16.8k GST tax and they are the biggest beneficiary?

Properties aside..

Let's say the rich wants to buy some luxury goods.. e.g. LV..

Most likely they buy a plane ticket go Europe on holiday and contribute to their economy and buy dozens of bags there than to pay GST here..

Of coz some things they will definitely kena GST (but the low & middle income always kena).. but they surely will find ways and means to avoid whenever possible..

Whereas the deduction in income tax is 100% sure \"earn\" one..

Aiyah, read the data lar and stop making all kinds of assumptions out of nowhere.

http://en.wikipedia.org/wiki/Goods_and_Services_Tax_%28Singapore%29

3Boys:

\"Calls to reduce the GST rate
In response to the rising cost of living, members of the opposition have called for the GST rate to be reduced. The Singapore government has argued that reducing the rate of GST would benefit the wealthy more than the poor, as the bulk of GST is collected from foreigners and higher-income earners. In 2010, 84.2% of all GST paid was collected from foreigners and the top 40% of Singaporean households, while the bottom 20% of households contributed only 4% of all GST paid. The government argued that as the GST was a core part of a fiscal system that provides transfers to the lower income, reducing the GST rate would be costly and inequitable, and leave the government with less resources to help the lower income.\"

Make of it what you will, objectively or otherwise.

Al those people calling for the abolishment of the GST in order to help the poor, you really sure that's the right way?

[Mdm Koh]

3Boys:

Mdm Koh,
on these points, I have to disagree with you. Healthcare costs is more than just the GST, I feel you are missing the woods for the trees.

Healthcare is a service, why exempt from taxation? Quite a bit of healthcare these days is reasonably discretionary. You happy to forgo tax on an expat undergoing breast augmentation? Laser acne removal? Recreational Viagra for the coffee shop ah pek?

The aesthetic surgeons will be sending you flowers on this V-Day for your suggestion.

One previous health minister said, people are happy to pay $100 for a hairdo or $10,000 for a overseas holiday, but healthcare, even high end sophisticated stuff, people want for free.

Find ways to bring down healthcare costs, subsidise for the poor....but keep the taxes as they are.

I think there is no basis to the minister's comparison as he has brought up two totally different types of services. An expensive hairdo or a holiday are luxuries while healthcare is not. Furthermore, the majority of Singaporeans are paying for healthcare or health insurance. Nobody really expects it to be free, unless they belong to the minority who are on public assistance.

I did a quick check online and countries with VAT such as Canada and Australia do have exemptions of taxes on medical supplies and services. (And not only that, but on groceries as well.) The Singapore government has stated that we are not doing so, because these countries are facing \"problems\" as a result of the exemptions. It is rather ingenious of them to say that. Every system has problems. Even ours. Also, Singapore does have exemptions on some services, such as financial services.

Although there is no perfect system, I think we should at least reconfigure the tax system such that it helps to lower costs for more people. Aesthetic medical services can be taxed if they are for cosmetic purposes rather than reconstructive.

I think exemption of GST on healthcare can be done; it's whether the government wants to do it. It's much more comfortable for them to maintain high revenues, but at what cost to the people?

[pirate]

$1,000,000 Ferrari. GST $70,000. Cannot buy from Italy. Actually can, but still have to pay the GST when shipped into Singapore.

[3Boys]

Mdm Koh:

It's much more comfortable for them to maintain high revenues, but at what cost to the people?

Again, this is quite an unsubstantiated assertion. Pray tell, how much revenue did the g'ment earn from GST on medical services? Versus how much did they pump back in in terms of subsidies?

Please don't confuse the issue. The point is keeping the whole thing affordable, not about the GST per se.

So why is it justifiable for people to spend discretionary income on hairdos and holidays, but not on medical care? Enjoyment I can pay for but medical care I expect other taxpayers to support?

[limlim]

3Boys:

Here, read this.....


http://en.wikipedia.org/wiki/Goods_and_Services_Tax_%28Singapore%29

Some excerpts
[color=#0000FF]
\"Objectives

The GST was part of a larger tax restructuring exercise to enable Singapore to shift its reliance from direct taxes to indirect taxes. The government argued that tax reform was necessary in order to maintain Singapore's competitiveness, in order to sustain long-term growth and job creation. The government also argued that with an ageing population, Singapore’s income tax base was expected to decline. With a broad-based GST, the taxation burden would be more evenly spread among the population.
A value-added tax, like the GST, also has several features that make it attractive. A tax on consumption, not income, the tax system inherently encourages savings and investments instead of consumption.

Make of it what you will, objectively or otherwise.

Al those people calling for the abolishment of the GST in order to help the poor, you really sure that's the right way?

Err.. consumption drives the economy isn't it? Discouraging consumption but trying to grow GDP.....? sounds fishy to me.

GST if necessary, is fine with me. But it should be kept low at say, 3% and still contribute to revenue.

If not enough, then the income tax of top tier shouldn't be reduced. Why can't they keep it at say, 25% while introducing GST?

Reducing income tax and increasing GST just doesn't makes sense to me other than benefiting the rich.

I'm okay with GST but don't agree with reducing top tier income tax to increase GST.

[3Boys]

limlim:

GST if necessary, is fine with me. But it should be kept low at say, 3% and still contribute to revenue.

If not enough, then the income tax of top tier shouldn't be reduced. Why can't they keep it at say, 25% while introducing GST?

Reducing income tax and increasing GST just doesn't makes sense to me other than benefiting the rich.

I'm okay with GST but don't agree with reducing top tier income tax to increase GST.

And from where did you arrive at this figure of 3% from? Plucked out of the air? Why not 0% like HK, why not 8% like Switzerland, why not 20% like Ghana or Norway?

What's wrong with 7%?

[pirate]

Mdm Koh:

I think exemption of GST on healthcare can be done; it's whether the government wants to do it. It's much more comfortable for them to maintain high revenues, but at what cost to the people?

Do you know how much Singapore earns from medical tourism? And because it is for a service, there is no GST refund for foreign patients. Nah, I would prefer the gov keep the GST on healthcare and use the money to directly reduce Singaporeans' medical costs. As to which segment of the citizenry gets how much subsidy, well that's a different question altogether.