DPM Wong: Cutting GST will increase business cost in SGP
-
By Gabriel Chen Dec 8, 2009
'Leaders must have the conviction to push through what needs to be done, rather than what is politically expedient or populist.'
LEADERS must have the conviction to do what is right and not what is popular, even if it costs them political points, said Deputy Prime Minister Wong Kan Seng yesterday.
He told a leadership forum that a crisis may give leaders the platform and momentum to drive difficult reforms, but such tough measures become harder to pursue once the economy rallies.
Businesses and employees would be reluctant to see the withdrawal of temporary support measures put in place during the downturn, and they might also be wary of moves to tighten credit and strengthen corporate governance.
'In such a situation, leaders must have the conviction to push through what needs to be done, rather than what is politically expedient or populist,' Mr Wong said.
He cited a range of populist measures that the Government avoided during the recession - decisions that did earn some criticism from some groups and observers.
There were calls to temporarily cut the goods and services tax (GST) and Central Providend Fund (CPF) contribution rate for employers - 'appealing arguments which we thoroughly assessed and ultimately rejected', he said.
The belief was that a lower GST rate would boost consumer spending, while payroll costs would fall with a cut to the employer CPF contribution rate.
Mr Wong explained yesterday why the Government did not heed both calls.
He said the fundamental problem during the recession was not one of wage competitiveness, but a slump in global demand. So cutting the employer CPF contribution rate would not have been appropriate.
'An across-the-board cut in wages was not warranted,' he said, adding that the Government's $4.5 billion Jobs Credit scheme provided employers with temporary relief on wage costs.
On the calls for slashing the GST rate, Mr Wong said such a move might actually raise business costs, as companies would have to change their systems to adjust to a new GST rate.
He was speaking at the fifth Asia Economic Summit yesterday, an event that brings together leading strategic thinkers, government officials and corporate chiefs to brainstorm and discuss the strategic challenges that Asia faces and the prospects ahead.
Other speakers included Penang Chief Minister Lim Guan Eng; Mr Joseph Tan, Credit Suisse's Asian chief economist for private banking; and Mr Wei Jianguo, secretary-general of the China Centre for International Economic Exchanges.
Mr Lim said the unipolar world, dominated by the United States, has given way to a global economy that is becoming more multipolar in nature.
Meanwhile, Mr Wei urged leaders to strengthen regional cooperation, actively explore a new growth model, protect the environment and achieve stable long-term development.*********************************
Copied from CNA forum
-
great. and increasing the GST won't. what a load of bullshit
-
Gst is to help the poorer Singaporeans, if it is lashed down, the poor will suffer more.
-
In WKS's mind as he read out the script:
[Who the hell wrote this stupid speech, must sack him tomorrow...]
-
By the same logic, when GST is increased, businesses would also lose money when they have to adapt their systems to reflect the new rate.
There. Logic phail.
-
- when increased GST, did not care about one-off business cost, they said it will benefit the poor people.
- when ask to decrease GST, care about one-off business cost, but don''t care it will benefit the poor.
=> conclusion: government money face, pay and pay
=> our action: vote for a change.
-
the differences is, when Gst increase, Govt will help organisations to adapt and plan for them for a period of time, but if Gst decrease, Govt being on the losing side, how to help them to adapt, so companies would had to change the system themselves.
If Gst is to reduce, govt tax dept will lose out, thereby unable to fund project such as jobs credits, silk upgrading which they had poured billions into it. It is not cheap ok, without the govt intervention, credits and also thanks to our reserve, in the last recession, we could had been wipe off the market.
-
Originally posted by laffin123:
- when increased GST, did not care about one-off business cost, they said it will benefit the poor people.
- when ask to decrease GST, care about one-off business cost, but don''t care it will benefit the poor.
=> conclusion: government money face, pay and pay
=> our action: vote for a change.
Gst is mend for rich people to pay more tax than poor people, then from the taxation of rich, we rebate Gst to the poor, that is why the govt said, "live within your mean" if you are not that rich, eat at hawker centre, no Gst, no service charge, if you think you want to eat in posh restaurant, no one can stop you, but you will be charged with Gst and service charge, u understand the logic or not? -
Originally posted by angel7030:
Gst is mend for rich people to pay more tax than poor people, then from the taxation of rich, we rebate Gst to the poor, that is why the govt said, "live within your mean" if you are not that rich, eat at hawker centre, no Gst, no service charge, if you think you want to eat in posh restaurant, no one can stop you, but you will be charged with Gst and service charge, u understand the logic or not?I would have to disagree with you on this.
Though you may be true about service charge, but for Gst, it is everywhere.
Everything to buy is included with Gst, from Electronics at Courts, to Fresh Stock at Supermarkets, to small items at Convenience stalls like 7-Eleven.
And, since the Gst was previously 5%, if it were really to reduce to 5%, businesses would just have to revert back to their old systems.
BTW, would it cost alot to change the systems?
-
Originally posted by angel7030:
Gst is mend for rich people to pay more tax than poor people, then from the taxation of rich, we rebate Gst to the poor, that is why the govt said, "live within your mean" if you are not that rich, eat at hawker centre, no Gst, no service charge, if you think you want to eat in posh restaurant, no one can stop you, but you will be charged with Gst and service charge, u understand the logic or not?angel7030,
you spoke a similar tone as minister v bala, and I love to engage a talk with someone with an intellectual level as minister v bala.
You said "eat at hawker centre, no Gst" => You must belong to the elite family (GCT's wife family) who cannot see through that the hawkers need to pay gst to their raw materials and landlord. The cost increase is pass to the customers. If you don't see the price increase, check out the quantity of food you are getting in hawker centre.
You said "Gst to fund to job credit." Get your figures right, Gst is not enough to fund job credit totally. It was drawn from the reserves. Job credit is devised by the government to help the people, cool. If government come up with a idea, be responsible for it. Don't stress the people with more taxing. If the intention is to make rich people pay more, why introduce in the consumption tax (GST) only , increase the income tax bracket for high income earners. The elite protects the elite, who in the elite family wants to pay more in income tax.
And if V Bala wants to allocate $20M social project to welcome new immigrants into our estate, why so stingy with $20 increase in social welfare monthly payout to poor people?
And V Bala is so concerned with bar top dancing and jealousy fight in bar, he should oversee the geylang industry now, 10 times worse. And worst still, he is a minister for community development youth sport, why is he supporting casino? To create more job and drive economy? why only about 3000 odd poor people get monthly state welfare now out of 3.5M singaporean. More bar top dancing and jealous fight for him to talk about in the future ?
Angel7030, to help yourself, please think of the poor people life, they may not afford a meal at hawker centres. And your logic collapses. And if you say it is only few people in the whole of singapore cannot afford a meal, I tell you one people is too many for ministers drawing top dollars benchmarked to top profession's pay. Do they want to benchmark with poor people indicators?
laffin
-
This is my assumption only
lower gst or cut in gst = erp going up, etc
some other tax might be implement
-
Originally posted by angel7030:
Gst is mend for rich people to pay more tax than poor people, then from the taxation of rich, we rebate Gst to the poor, that is why the govt said, "live within your mean" if you are not that rich, eat at hawker centre, no Gst, no service charge, if you think you want to eat in posh restaurant, no one can stop you, but you will be charged with Gst and service charge, u understand the logic or not?GST is across the board. Even basic necessities such as toilet paper and rice.
If they really wanted to help the poor, they would have excluded GSTs from these items.
A rich person earning 30k and paying $500 or even $1000 GST a month is nothing compared to a poor person earning $2k and paying $50 GST a month
Total nonsense coming from a person who is known to sprout nonsense.
-
Originally posted by soul_rage:
GST is across the board. Even basic necessities such as toilet paper and rice.
If they really wanted to help the poor, they would have excluded GSTs from these items.
A rich person earning 30k and paying $500 or even $1000 GST a month is nothing compared to a poor person earning $2k and paying $50 GST a month
Total nonsense coming from a person who is known to sprout nonsense.
Not really, to some extend, yes Gst is do effect abit, but if i am a normal gal, which i am, i eat at hawker centre, shop at NTUC or seng siong that absorb Gst, buy my clothing from pasar malam or small shops with no overturn of 1 million porfit per year thereby cannot charge Gst. Take public transport to evade car gst, erp and all those nonsense, the only Gst charged will be my govt bills. Then i get Gst rebate from the govt to cover up the charges, so in nutshell, only those rich are spending Gst alots, and if you are rich and wanted to spend like a rich person, going to posh restuarant, buy at ION orchard, dine and wine at Clarke quay, loan out expensive car and pay patrol tax and Gst etc etc...then you are asking for trouble. -
cos non Singaporean need to buy basic nesessities
cannot be so directly what
later some people make noise
so the gst is used to help the needy ... ...
-
Gst rebates and other rebates are also base on income and housing, even if it is the same across the board, those who spend less on Gst will gain from it. Understand?
-
Originally posted by angel7030:
Not really, to some extend, yes Gst is do effect abit, but if i am a normal gal, which i am, i eat at hawker centre, shop at NTUC or seng siong that absorb Gst, buy my clothing from pasar malam or small shops with no overturn of 1 million porfit per year thereby cannot charge Gst. Take public transport to evade car gst, erp and all those nonsense, the only Gst charged will be my govt bills. Then i get Gst rebate from the govt to cover up the charges, so in nutshell, only those rich are spending Gst alots, and if you are rich and wanted to spend like a rich person, going to posh restuarant, buy at ION orchard, dine and wine at Clarke quay, loan out expensive car and pay patrol tax and Gst etc etc...then you are asking for trouble.Sometimes your posts are very hilarious.
1) We are talking about GST. Public transport also has GST. What the hell is car gst, erp, when we are talking about GST?
2) "If you are rich and wanted to spend like a rich person...". If you are rich, you are rich. This sentence doesn't make much sense.
3) "loan out expensive car" so rich person is loaning out his expensive car and he pays petrol tax??? Doesn't make sense again. Don't know what you are trying to explain.
Sometimes you don't make sense until it's very funny.
-
Originally posted by angel7030:
Gst rebates and other rebates are also base on income and housing, even if it is the same across the board, those who spend less on Gst will gain from it. Understand?
Removing GST from basic necessities will help the poor directly, yes or not?
So why is there GST on basic necessities, if GST is to help the poor?
-
Originally posted by soul_rage:
Removing GST from basic necessities will help the poor directly, yes or not?
So why is there GST on basic necessities, if GST is to help the poor?
i believe if you shop at NTUC or Sheng Siong there is no Gst, but if you shop your necessities at up town Market place, Taka, Metro, Cold storage...then you get the paid Gst. Let me give u a scenario, Ah Huat is a workers earning 2k per month, Angel is a CEO, earning 15k per month. Ah Huat goes to NTUC, a walking distance from his house to buy his neccessities, Angel goes to Takashimaya to do her shopping, every month Ah Huat spent about $200 with no Gst at NTUC, Angel also spent $200 but with Gst of $14, Car parking $20, Petrol $10, ERP $6, Car depreciation $20 car insurance..road tax etc etc which total up to about $260. And yet when i comes to rebates, Ah Huat get full rebates of $300 Gst rebates and other govt rebates of $600, totally $900. And Angel get nothing if she is consider as the upper rich, yet she is been taxed both on income and public spending. In the end, govt used Angel tax to create job credits so that company do not retrench workers, free education and upgrading for Singaporeans at e2i or learning Hub, bursaries, back to school voucher, transport vouchers, Power Supply offset vouchers, linkpoints for NTUC shopping, rebate of 5% for NTUC shopper..etc etc. And Angel get nothing but pay and pay.Therefore, Ah Huat gained from Gst, if only he knows how to be thrift about his spending and not anyhow go and spent on clubs or gals or lotteries, that is why govt keep telling people, to spend within your means, you will not lose out.
-
Originally posted by soul_rage:
Removing GST from basic necessities will help the poor directly, yes or not?
So why is there GST on basic necessities, if GST is to help the poor?
They say it's too troublesome, but it's not troublesome to receive the multi-million dollar salaries.
Strange that they say it's troublesome, yet they have zero-rating and exempt, isn't it troublesome to implement as well.
Australia exempts basic food items, medication and books from GST. But Singapore PAP government wants to help the poor, so they implement GST for all items.
-
Originally posted by soul_rage:
Sometimes your posts are very hilarious.
1) We are talking about GST. Public transport also has GST. What the hell is car gst, erp, when we are talking about GST?
2) "If you are rich and wanted to spend like a rich person...". If you are rich, you are rich. This sentence doesn't make much sense.
3) "loan out expensive car" so rich person is loaning out his expensive car and he pays petrol tax??? Doesn't make sense again. Don't know what you are trying to explain.
Sometimes you don't make sense until it's very funny.
You are talking to an Or Kui Po, so your expectation on common sense should be greatly reduced.
-
Some assumed Intellect people are peoples who suffocated themselve at time just to hold on to egotism n pride, which to me, is worth nothing but shit.
-
Not too sure if GST will affect businesses but surely the effect varies. Some businesses, especially non GST Registered ones, may incur savings instead of expenses as a results.
About the added costs of companies incurring costs to having to adapt a change in the system, well it's only a one-off cost, which ends once the system is up and running again. If there's any additional system change/adapting costs, as suggested by Mr Wong, then I certainly can't see it.
---
Yes, GST helps the poor, only if it's viewed on the broader long run. Govt gets the supplement to provide amenities and subsidies for the families of the lower income band to engage on.
Indeed a $10 item will cost $10.70, seventy cents more, and that's a lot of expenditure in the long run, but subsidies for them at least offers a little bit of respite.
Of course if anyone spending $1000 on an item will suffer a $70 GST, but the poor don't necessarily spend that amount, thus they don't suffer such a big 'compulsary donation'. Anyway, if anyone can afford to lavishly spend $1000, they shouldn't be complaining about GST already.
-
well, the problem is alot of those middle class are attracted by the rich class kind of lifestyle, ending up them being ever paying loans and taxes, guess these are group who are as usual complaining, grumbling and never stop blaming. In fact, at the two extremes of the poorest and richiest, there is no problem.
-
..........MAKE SENSE.......U SOUND IMPRACTICAL AND UNAWARE OF THE REAL WORLD.IF PEOPLE THOUGHT LIKE U........WE WOULD JUST END UP BECOMING LLIKE INDIA DECADES AGO.
-
Originally posted by Googooboyy:
Not too sure if GST will affect businesses but surely the effect varies. Some businesses, especially non GST Registered ones, may incur savings instead of expenses as a results.
About the added costs of companies incurring costs to having to adapt a change in the system, well it's only a one-off cost, which ends once the system is up and running again. If there's any additional system change/adapting costs, as suggested by Mr Wong, then I certainly can't see it.
---
Yes, GST helps the poor, only if it's viewed on the broader long run. Govt gets the supplement to provide amenities and subsidies for the families of the lower income band to engage on.
Indeed a $10 item will cost $10.70, seventy cents more, and that's a lot of expenditure in the long run, but subsidies for them at least offers a little bit of respite.
Of course if anyone spending $1000 on an item will suffer a $70 GST, but the poor don't necessarily spend that amount, thus they don't suffer such a big 'compulsary donation'. Anyway, if anyone can afford to lavishly spend $1000, they shouldn't be complaining about GST already.
Let me guess.
Student.