GST Hike

GST HIKE!!!

In response to PM Lee announcement on the increase in GST by 2% from the current 5%, much need to be considered for the up an coming activites that this blogging parliament organises. However we will give our greatest understanding for such taxation needs, Merdeka Singapura!!

After much discussion with our Blogging Treasurer MP CCX, it seems that our Budget 2006 for BBQ needs to be revised. For example, it was budgeted that each person could enjoy 5 pcs of chicken wing, but with the new increase in GST we are please to limit each person with 3pcs of chicken wing! The long awaiting GREAT Char beehoon, will have nothing except beehoon fried "tau gay" and more "tau gay" fried with beehoon! Of course we know that you guys wouldnt mind~

Understanding the concern of our follow bloggers in this commuinity, i took the time to do a little reading, so as to let all of us have a better understanding of what are we paying GST for.

Goods and Services Tax or better known as GST, was first introduced to Singapore in 1994 at 3%. However when it was first announced, SG government indicated that GST could go up to 12% in future, this figure is considered low as compared to other developed countries. The taxation seems inevitable.

Not long after Singaporeans got used to the GST with plenty of unhappiness and commotion, GST rose to 5%. Yet again it seems inevitable as it was announced that it was to prevent the state budget from going into deficit in future.

Year 2006, GST up to 7% was announced in 13/11/06. To much displease of many, goverment indicated that Singapore is growing fast into a greying country, taxation is much needed to support these elderly and the lower income families. The increase in tax is to act as the safety net for the State Budget.


It seems that everything is increasing, GST, water and a barrel of oil, but never our wages. Signs of increasing taxes, is a sign of our country growing together with our economy, not to forget the standard of living. To cope with the increase in GST, the govenment mentioned about package for the countrymen, however is that one time payment will really help sustained us in the long term? It will take months until the package will finalise, by then the impact has already hit us all. So should we request an increase in wages as well? Say 2% increase? The answer is no, that would render the GST increase of 2% useless and in fact devalue local currency, eventually leading to inflation.

If Singapore were to compare its current GST charges as to Canada (Current GST 10%) or even UK, it has to be noted that despite the high living standards there, foreign currencies have a higher value as compare to Singapore.

Budgeting is no easy task, be it in a corporate company to an individual reaching into his pocket to buy a cup of kopi only to find out that he has insufficient coins for tommorow's daily dose of caffine. Of course budgeting for a country is far more complex and requires greater forsight and leaves no room for errors.. However it has been noted many a times that increase in taxes is to help cope with the insufficient budget, does that mean that the MP sitting in the parliament is incapable? Should their mistakes be burdened and cushioned by the workforce behind the growing economy?

Small and medium entreprises are expected to suffer the impact of the GST hike the most, likewise of lower income families. It is ironic to say that package payout and the GST can be use as a safety net to help these families, when the GST without doubt will burden them in the long term. Poor families will become poorer, while medium class families becomes poor. Small firms might go burst in a long run if its unprepared while a bigger firm could easily fit into its place and take over that share of the pie in a industry. It a vicious cycle of big fish eating small fish... and the rich gets richer...and the poor...

Perharps this is where a commuinist society is better off than the democrats??

Haha, so thoughts on these pple?? Heh hope this blog would be shut down after i publish this post. Hope i din bore you guys with this long posts~


All Hail MEL~ Cheers