GST to be raised to 7%
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The implementation of GST is exceptionally punitive on the older folks (NOT only retirees, but other's who have been taxed at higher tax bracket before); those who have paid higher taxes in the older tax regime, income which was already perhaps tax at 3.5% [$5,000] to 33% [$400,000] (Year of Assessment 1987), then they have to contend with another tax of 7% on the income which was already taxed.
If you had made an income of $35,000 per annum in 1986, your income taxes would be $3,375.
first-- 5,000 [3.5%] = $175
next- 2,400 [6.0%] = $150
first-- 7,500 [-------] = $375
next--2,500 [8.0% ] = $200
first-10,000 [-------] = $525
next--5,000 [8.0%] = $400
first-15,000 [-------] = $925
next- 5,000 [9.0%] = $450
first-20,000 [--------] = $1,375
next-5,000 [12.0%] = $600
first 25,000 [--------] = $1,975
next10,000 [14.0%] = $1,400
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The effective tax rate for your income of $35,000 would be 9.64%, after the 7% GST implementation, whatever that you saved during your younger days and choose to spend it now (you have to spend a large portion of it some time or rather).
So if you managed to save half of your saving in your young days and choose to spend it after Feb/Apr 2007, your total taxes paid (direct and indirect) would be:
9.64% + 7% x (1/2) = 13.14%
This gives a new meaning of the word "Double Taxation", in the Singaporean context.
They should provide structured offset packages for people who have been taxed at higher tax rates. I mean give more cash to these people, instead of having tax abatement, since some of these folks might not be working anymore.
Cash offset packages, half of 7% against the taxpayers disposable income in previous years would be a good yardstick to start with.
There are laws in the constitution to prevent against repeated trials. Doesn't the issue of repeated taxation go against the spirit of the constitution.
If they really want to help the poor, they should make the payouts to the poor a permanent feature, write it into an act with no correction without a national referendum; somehow or rather I feel that they will give you good payouts for a few years, thereafter, when all the discontentment has simmered down, they will give you less. It's like they give you 10 lollipops for first year, after 3 years when you are used to the 7% and less people would recall of the 2% GST hike, they will give you less lollipops, maybe 1 or 2, that is a common strategy. -
MM just announced that corporate tax rate will be further reduced by 1%, he said that's why "GST has to go up for the next 5 years".
I wonder what he means by up for the next 5 years; is he going to make afew more increases? -
Originally posted by maurizio13:MM just announced that corporate tax rate will be further reduced by 1%, he said that's why "GST has to go up for the next 5 years".
I wonder what he means by up for the next 5 years; is he going to make afew more increases?
get ready GST may go up to 10%! To please the minority, the majority suffers (on reduction of company tax)!! Even if the company tax is reduced just wonder those foreign companies still keen to come over here for investment like before or not. Now they have more choices! -
D.Originally posted by OO_OO_OO:A: GST hike is to help the poor -PM
B: GST hike is to offset lower corporate tax -MM
C: GST hike is to realise the promises made during GE -SM
D: God knows what
multiple choice qn. take your pick. -
1.Why there is no tax exemptions?Originally posted by maurizio13:T
If you had made an income of $35,000 per annum in 1986, your income taxes would be $3,375. -
So if you managed to save half of your saving in your young days and choose to spend it after Feb/Apr 2007, your total taxes paid (direct and indirect) would be:
9.64% + 7% x (1/2) = 13.14%
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2.Is that right you assume all you spend is subject to GST?
Mortgage payment is not subject to GST.
We dunt have to follow others.But read their reasons carefully
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GST in Hong Kong and Singapore and why we need to empower ourselves
23 Jan 07
There are many Singaporeans who cannot see the importance of people power as it relates to their everyday lives.
For them, political rights such as freedom of speech and freedom of peaceful assembly are idealistic notions that have nothing to do with bread-and-butter issues that affect their everyday lives.
Nothing could be further from the truth.
Take the recent announcement of the hike in the GST. Despite the people's unease over such an increase, does anyone doubt that the PAP will again get its way, however negatively its policies impact on society and our economy?
There is hardly any scrutiny and zero public debate on the matter. Meanwhile the widening income disparity looks set to grow even bigger with the 7 percent GST hike. And like a joke coming out of a bad comic strip, the prime minister tells us that the increase will help the poor.
Contrast this with Hong Kong. When the SAR Government put forth the idea of introducing a GST, there was much debate in the Legislative Council as well as among the wider public through the free media.
Seeing how such a tax would hurt the competitiveness of Hong Kong as well as the poorer segments of society, opposition and civic groups conducted marches and protests to convey Hong Kongers' unhappiness over the introduction of the tax (see photographs).
It wasn't long before the administration got the message and shelved the idea of a GST.
That's active citizenry at work. That's how citizens make governments listen. That's how democratic rights help to protect our economic welfare, the issues that affect our everyday lives.
Without these fundamental rights to freely speak and congregate, how are we going to rectify the current imbalance that we now have where whenever the PAP says jump, everyone asks how high?
There are also many who see that protests are a political, albeit necessary, evil that must be conducted only as a last resort, lest society breaks down into violence and anarchy.
Alas, the PAP has managed to sear into our minds that public protests are dangerously subversive weapons that if unbanned will lead to the disintegration of society as we know it.
If truth be told, mass public activities such as protests help bond citizens together as well as to the State. A political culture that makes the people feel at ease in expressing themselves publicly, even vociferously, but peacefully, is one that will ultimately signal greater stability and continuity.
Again, Hong Kong provides us some valuable lessons. In the myriads of protests that have taken place in the territory, and there have been some massive ones, Hong Kongers have demonstrated how mass public action can be conducted with civility and dignity while at the same time send clear messages to the authorities how they want their city to be run.
Does the city look like its on the verge of anarchy?
The sad truth is that we in Singapore have lost our ability to hold our government accountable and to make sure it serves our interests rather than its own and those of the ruling elite.
But all is not lost. We can rebuild and we can regain our voice. To do this, we need to come together to discover how we can empower ourselves. And what better way to start than with the Empower Singapore Seminar Series.
If you haven't already registered yourself for the seminar this Sunday, 28 Jan 07, do it now and learn for yourself how we can all become active citizens in our own country.
So the next time you hear someone say that democracy and rights have nothing to do with bread-and-butter issues, tell him of the impending increase in the GST and ask him what he intends to do about it.
Then mention what his Hong Kong counterpart has done about it. -
hahas sounds more like an ad with that conclusion.. yea i agree with you, but you must realise, lky has been the pillar of singapore for the past 47 years.. it was he who helped the progress and development of singapore to its state today.. the actual problem at hand is singapore's inability to move on into the future, a future without lky, rationally! that's the greatest struggle for us before we look into the votes or even the blame
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Taiwan and Hongkong have no LKY. Aren't they are doing better than Singapore?Originally posted by blue_crimson_89:hahas sounds more like an ad with that conclusion.. yea i agree with you, but you must realise, lky has been the pillar of singapore for the past 47 years.. it was he who helped the progress and development of singapore to its state today.. the actual problem at hand is singapore's inability to move on into the future, a future without lky, rationally! that's the greatest struggle for us before we look into the votes or even the blame
Just look at Hang Seng Index. If you were to base on S$ currency ratio in calculate Hang Seng Index.
HangSeng Index is above 4000 as compared with ST index. -
Originally posted by lionnoisy:
Ka ni nia....lost on Shi t corpse. GST up immediately. Somemore PM can say.. Chang Tong Pu Lu Tun Tong.
1.Why there is no tax exemptions?
2.Is that right you assume all you spend is subject to GST?
Mortgage payment is not subject to GST.
[b]We dunt have to follow others.But read their reasons carefully
3.[/b]
This PM talked with bird brain.......once GST in increase where got short pain?
This is going to be long marathon in pain for the average and lower income. And, they are looking at 10% GST in near future or in another 6-8 years time!!!
Kan ni nia......How does he came out with the word ''Chang Tong Pu Lu Tun Tong''? Does he mean.... bearing this pain now...and there will be no more pain in our arse for the next increase of GST.
Why not increase to 15% now.....''Chang Tong Pu Lu Tun Tong!!!''
Or, could he create miracle that he is able to upbring the local average and lower income earners be in par with switzerland standard?
I used to be pap supporter........now....
I'm getting very disappointed with pap and feeling very disgusted. -
I used to support PAP too, but these days I find that their policies are retrogressive.
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2% GST hike may come in one-off adjustment: PM Lee
By Dominique Loh, Channel NewsAsia | Posted: 24 January 2007 2127 hrs
2% GST hike may come in one-off adjustment: PM Lee
A possible increase in the employers CPF contribution raised concerns among employers
SINGAPORE: Prime Minister Lee Hsien Loong has indicated that the 2 percentage point hike in the Goods and Services Tax will likely come in a one-off adjustment, and the government is also seriously looking at increasing the employer's contribution to the Central Provident Fund.
He was speaking to a gathering of union leaders and government officials, and employers in a tripartite forum on Wednesday.
There were several issues this gathering had in mind for the Prime Minister, such as the impending GST hike.
Some are hoping the increase will be staggered over time to cushion the impact, but Mr Lee thinks otherwise.
"Is it better to take your medicine sooner or stretch it out? Take medicine once or two times? I prefer to make my medicine early, why? This is something we need to do, once we have done it, we can move on; we have the resources to have the revenue from the GST that we use, for all the things we want, further investments, etc. If I stretch it out, my revenues come in slower, that means I cannot do all the things I need to now," said Mr Lee.
A smaller hike could also mean less money for the offset package, which is meant to help cushion the impact on the needy.
When asked about using the CPF as a tool to adjust wages when the economy turns, Mr Lee explained that there was less hesitation to cut the employer's contribution after the Asian Financial Crisis, because the 20 percent rate provided a large buffer.
Employers and employees was able to adjust accordingly.
Mr Lee added: "When I put the CPF at 33 percent, that buffer is a lot less - it's going to be a much higher hurdle to persuade me that it is necessary to cut the CPF now. If there is a world recession - if China crashes, India crashes, the Americans crashes - I would have no choice but otherwise my buffer is lower. I ought to treat the CPF more as a structural piece of people's salaries - with that mind set that myself and MOM is looking at adjusting the CPF now. "
Mr Lee says the government is also mindful about keeping CPF rates within range for Singapore to be competitive.
It is also working on a qualifying criteria for the workfare bonus, especially if it is going to be a permanent feature.
The inaugural forum was aimed at maintaining, and expanding the good tripartite relations in Singapore. - CNA/dt/ch -
The new PAP is no longer the same as the old PAP. Last time the PAP is really got passion one, really go out and win people's trust. Now the PAP only care about their own salary... how much reserves they have... how much profit they can make...
Fark care the people lah, if election coming then give them something make them happy than torture again loh... so easy... -
can anyone tell how the 2% increase is going to help anyone?
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The government say already... help the poor by helping them spend more.Originally posted by LinYu:can anyone tell how the 2% increase is going to help anyone? -
CASE receives complaints over unjustified price increases
By May Wong, Channel NewsAsia | Posted: 24 January 2007 2248 hrs
Photos 1 of 1
Seah Seng Choon, Executive Director, CASE
Related Videos
CASE receives complaints over unjustified price increases
The Consumers Association of Singapore, or CASE, received about six complaints over the last three months on shops using the upcoming GST increase as an excuse to raise prices.
But after checks, most of the shops gave valid reasons for the increases such as more expensive ingredients.
CASE receives complaints over unjustified price increases
One complaint involved charges by a dental clinic.
Jessie Tan's daughter had her braces fixed at the clinic at the end of 2005 for S$4,700.
After paying about S$3,500, Madam Tan signed an instalment plan to pay S$120 monthly for the next 10 months.
But early last year, the clinic told her to pay an additional S$6 monthly.
Jessie Tan, Consumer, said: "The clinic says that because of the increase in the GST from 5 to 7 percent. It's not stated yet by the government that we have to pay this 7 percent so it's really not fair."
Eventually, Madam Tan paid off the remaining bill in order not to incur the extra cost.
But the dental clinic said it was just a misunderstanding.
Yap Geok Lan, Manager of The Smile Cliniques, explained that the clinic was formerly not a company registered for GST but now it is.
She added: "At the moment, we are still charging them five percent GST but we're not charging them the GST increase at the moment."
CASE says many complaints about businesses using the GST increase as an excuse to charge more are often found to be untrue after investigations.
Usually, it is just a case of miscommunication.
So CASE advises businesses, whether big or small ones, to be transparent and explain the real reasons for any price adjustments to consumers.
Seah Seng Choon, Executive Director, CASE, said: "Businesses need to educate their staff to give the appropriate reason if there are any price adjustments for their products and services and not leave it to their front-line staff to give any reasons convenient to them. It will create ill-will among the consumers and consumer would then speculate that the price adjustments are due to the GST hike. Very often than not, we find that those complaints are not true."
Details of the GST increase will be out on Budget Day next month. - CNA/ch -
So we can fund more relief packages to the lower income group affected by the gst increase. Hey, wait, that doesn't sound quite right.Originally posted by LinYu:can anyone tell how the 2% increase is going to help anyone? 
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Actually, it's a 40% increase from 5% to 7%.Originally posted by LinYu:can anyone tell how the 2% increase is going to help anyone? 
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did anyone read the pamphlet pinned up on the notice board of your hdb flat?
the reason given for the gst increase is;
to help the needy.
to help the elderly.
so that the govt can invest more. I DONT SEE THE 'GROWING' INVESTMENT BENEFITTING ANY SINGAPOREAN!!!
why cant they increase corporate tax instead? the reason is it will drive investments away.
why cant they increase income tax instead? IT WILL DISCOURAGE PEOPLE FROM WORKING HARD!!!!
can you FARKING believe this???? will you stop working hard just because income tax goes up????? -
Cause if tax on their income, the ministers also suffer cause confirm kena one times jialat... if GST atmost they spend less lor...
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GOD SAYS TAX (GST) so wad can u do....who is da GOD....
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think they are toying with the idea to collect income tax upfront monthly
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Make it daily... easier.Originally posted by SevenEleven:think they are toying with the idea to collect income tax upfront monthly -
Thats why we need to save money by buying less
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HeheheOriginally posted by bigmouthjoe:Make it daily... easier.
Aren't they doing it already with GST. -
Yes!!!
Don't spend much!!! Cut down to 50% as compared to last time. Eat less 50%!!!