GST to be raised to 7%
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If I don't remember wrongly, I believe there is no decrease in income tax, but that corporate tax is reduced by 2%. So correct me if I am wrong, but example 2 is not correct. Assuming income tax wasn't reduced, then the person in example 2 would be paying 61,650 + 3,360 = 65,010, which is an effective increase of 1.5% (over 64,050.00 when GST was 5%). Still, becoz the rich earns so much, the increase in cost of living is negligible to them, though in real money terms, they have to pay more.Originally posted by laurence82:True?
This is from the internet and it's really interesting. Even if you change the figures, the fact still remains as the Rich get Richer and the Poor gets Poorer.
Example 1
In 2006, if after rebates etc and your net taxable income is $60,000 , the income tax you need to pay is $2,700 (8.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480 Total=$3,180 in Tax paid.
In 2007, if after rebates etc and your net taxable income is $60,000, the income tax you need to pay is $2,600 (8.50%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672 Total=$3,272 in Tax paid.
From $3,180 to $3,272, the effective increase is 2.89%.
Example 2
In 2006, if after rebates etc and your net taxable income is $400,000 , the income tax you need to pay is $61,650 (21%). If you spend $4,000 a month on needed goods and services, the GST paid for 5% will be $2,400 Total=$64,050 in Tax paid.
In 2007, if after rebates etc and your net taxable income is $400,000, the income tax you need to pay is $58,700 (20%). If you spend $4,000 a month on needed goods and services, the GST paid for 7% will be $3,360 Total=$62,060 in Tax paid.
From $64,050 to $62,060, the effective decrease is -3.11% .
Example 3
In 2006, if after rebates etc and your net taxable income is $25,000 , the income tax you need to pay is $187.50 (3.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480 Total=$667.50 in Tax paid.
In 2007, if after rebates etc and your net taxable income is $25,000, the income tax you need to pay is $175 (3.5%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672 Total=$847 in Tax paid.
From $667.50 to $847, the effective increase is 26.89% .
Anyway, percentages are all but a numbers game. Present the appropriate numbers to prove your point ("only 2% GST increase, so don't worry", and you see a few pro-PAP people whom can tell you its only 2%, nothing much, when they are also being eaten alive by the policies)
In my research work in the past, I realized that there are SO MANY ways of looking at the same set of numbers, that you need only pick the ones that are most beneficial to you, and present them to your examiner.
Similarly, our govt practises the same tactics. Select the facts, and only show those that are most beneficial to them. So they never lied to you. Just that they never show you the negative aspects of their decisions.
And at the end of the day, who suffers most? The poor and the middle class. But most of us are ignorant to such high-level tactics anyway, or are too blinded by those small little carrots to see thru the tactics, that we just take it and still happily laugh while being eaten alive (read: 66% of the population who voted). So who is at fault? Not the govt, but US, the silly population.
I have many friends from other nationalities, and I always hear the same thing. "You singaporeans complain and complain and complain, but at the end, when the difference can be made during the elections, you guys chicken out and vote in the people you don't like. So who to blame? Yourselves. Can only blame yourselves for being stupid and cowardly". -
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PLS DUN INCREASE GST LAR...
SO ALL OF US CAN HAPPILY MAKE MORE BABIES.
SO WE WONT SUFFER FROM SICKNESS LIKE DEPRESSION, CANCER , HEART ATTACK.
SO WE CAN HAVE MORE TIME TO LOOK AFTER OUR CHILDREN AND PREVENT THEM FROM TURNING VOID DECKS AND STAIR CASE INTO LOVERS' PARK. -
They did not lower the marginal tax rates for personal income tax, perhaps this could be used as a reason to increase GST to 10% in the next round of GST hikes.
Overheard one of the MPs during parliament hinting on the 10% mark within 10 years. -
Hong Kong cancel the proposal of GST.
Only history will tell if it is good for next generations.
Chart 3.3: Comparison of GST/VAT Rates Across Countries,p 24
...........0%.... 5%....10% ....15% ...20% ...25%
GST/VAT rates
Source: International VAT Monitor, March/April 2006, No.02, Article 8 –
Overview of General Turnover Taxes and Tax Rates
BUDGET HIGHLIGHTS,Financial Year 2007 -
Originally posted by lionnoisy:
You are so equitable, comparing countries which have a higher GST (VAT), exempts basic necessities from GST (to help the poor) and provide welfare to it's citizens; with Singapore who wants to increase GST to their level, don't want to exempt basic necessities from GST (so that they can help the poor and tax the rich? because the rich consumes basic necessities too? unless the rich in Singapore constitutes more than 50% of the population, else how would it be beneficial to tax basic necessities) and not provide any welfare to it's citizens.
Hong Kong cancel the proposal of GST.
Only history will tell if it is good for next generations.
Chart 3.3: Comparison of GST/VAT Rates Across Countries,p 24
...........0%.... 5%....10% ....15% ...20% ...25%
GST/VAT rates
Source: International VAT Monitor, March/April 2006, No.02, Article 8 –
Overview of General Turnover Taxes and Tax Rates
[b]BUDGET HIGHLIGHTS,Financial Year 2007[/b] -
GST increase plus Workfare, offset package is not regressive: Tharman
By Dominique Loh, Channel NewsAsia | Posted: 01 March 2007 2131 hrs
SINGAPORE: Second Finance Minister Tharman Shanmugaratnam says the GST increase, when coupled with the Workfare scheme, is not regressive.
He was addressing concerns that the lower income will be harder hit by the rise in the consumption tax.
In fact, Mr Tharman says, the lower income group will be better off with Workfare and the GST offset package.
Under Singapore's current tax system, the top 20 per cent of households will contribute more than half of the taxes collected by the government.
At 54 per cent of total taxes, this amount is also about four times as much as what the bottom 40 per cent of Singaporeans are paying in taxes.
When Workfare and the GST are factored into the equation, the lowest 20 per cent of Singaporeans will end up getting more incentives from the government than they are taxed.
But a concern among many is the sandwiched middle-income Singaporean.
Is there anything in this year's budget for this group?
"I think they are referring especially to those who pay income tax and also own a car and have a maid and therefore pay significant indirect taxes as well. They are, in fact, the group mainly between the 60th and 80th percentiles. Their overall tax burden is typically about nine to eleven per cent of their annual income," says Mr Tharman.
Mr Tharman says the government has taken steps to reduce taxing this group of middle-income Singaporeans, such as reducing the foreign domestic worker levy and car ownership taxes.
And compared to other countries, few cities have lower tax rates than Singapore does.
The top personal income tax rate is currently 20 per cent. - CNA/yy
They saving the reduction of the top tier personal tax rate of 20% for future increase of GST to 10%. -
Originally posted by maurizio13:
GST not regressive?
[b]GST increase plus Workfare, offset package is not regressive: Tharman
By Dominique Loh, Channel NewsAsia | Posted: 01 March 2007 2131 hrs
SINGAPORE: Second Finance Minister Tharman Shanmugaratnam says the GST increase, when coupled with the Workfare scheme, is not regressive.
He was addressing concerns that the lower income will be harder hit by the rise in the consumption tax.
In fact, Mr Tharman says, the lower income group will be better off with Workfare and the GST offset package.
Under Singapore's current tax system, the top 20 per cent of households will contribute more than half of the taxes collected by the government.
At 54 per cent of total taxes, this amount is also about four times as much as what the bottom 40 per cent of Singaporeans are paying in taxes.
When Workfare and the GST are factored into the equation, the lowest 20 per cent of Singaporeans will end up getting more incentives from the government than they are taxed.
But a concern among many is the sandwiched middle-income Singaporean.
Is there anything in this year's budget for this group?
"I think they are referring especially to those who pay income tax and also own a car and have a maid and therefore pay significant indirect taxes as well. They are, in fact, the group mainly between the 60th and 80th percentiles. Their overall tax burden is typically about nine to eleven per cent of their annual income," says Mr Tharman.
Mr Tharman says the government has taken steps to reduce taxing this group of middle-income Singaporeans, such as reducing the foreign domestic worker levy and car ownership taxes.
And compared to other countries, few cities have lower tax rates than Singapore does.
The top personal income tax rate is currently 20 per cent. - CNA/yy
They saving the reduction of the top tier personal tax rate of 20% for future increase of GST to 10%.
[/b]
Think TaMaDe override all those Economics professors. -
Originally posted by lionnoisy:
The government agent is still here!
Hong Kong cancel the proposal of GST.
Only history will tell if it is good for next generations.
Chart 3.3: Comparison of GST/VAT Rates Across Countries,p 24
...........0%.... 5%....10% ....15% ...20% ...25%
GST/VAT rates
Source: International VAT Monitor, March/April 2006, No.02, Article 8 –
Overview of General Turnover Taxes and Tax Rates
[b]BUDGET HIGHLIGHTS,Financial Year 2007[/b] -
Originally posted by maurizio13:
if the offset package is gd, won't the PM announce it himself
[b]GST increase plus Workfare, offset package is not regressive: Tharman
By Dominique Loh, Channel NewsAsia | Posted: 01 March 2007 2131 hrs
SINGAPORE: Second Finance Minister Tharman Shanmugaratnam says the GST increase, when coupled with the Workfare scheme, is not regressive.
He was addressing concerns that the lower income will be harder hit by the rise in the consumption tax.
In fact, Mr Tharman says, the lower income group will be better off with Workfare and the GST offset package.
Under Singapore's current tax system, the top 20 per cent of households will contribute more than half of the taxes collected by the government.
At 54 per cent of total taxes, this amount is also about four times as much as what the bottom 40 per cent of Singaporeans are paying in taxes.
When Workfare and the GST are factored into the equation, the lowest 20 per cent of Singaporeans will end up getting more incentives from the government than they are taxed.
But a concern among many is the sandwiched middle-income Singaporean.
Is there anything in this year's budget for this group?
"I think they are referring especially to those who pay income tax and also own a car and have a maid and therefore pay significant indirect taxes as well. They are, in fact, the group mainly between the 60th and 80th percentiles. Their overall tax burden is typically about nine to eleven per cent of their annual income," says Mr Tharman.
Mr Tharman says the government has taken steps to reduce taxing this group of middle-income Singaporeans, such as reducing the foreign domestic worker levy and car ownership taxes.
And compared to other countries, few cities have lower tax rates than Singapore does.
The top personal income tax rate is currently 20 per cent. - CNA/yy
They saving the reduction of the top tier personal tax rate of 20% for future increase of GST to 10%.
[/b]
just want another person to take the rap for it.
bo liao, lower income group won't pay any income tax but will definitely have to pay GST, how long can the offset package last?? the whole lifetime??
be honest lah, the govt only interested in topping up their reserves n their salaries.
compare to other countries??? other countries have social n medical benefits to justify their tax rate, what do we have??? Pay n pay!! -
i wonder what will happen to singapore in ten yrs time, when the gov. kept increasing the GST??
then the same old story:
as compared to other nations , we are one of th lowest in gst.
but we are singapore! not other nations
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nice pic, u draw it?Originally posted by sam07: -
What a joke...get your figures right before opening your big mouth again and polluting the air with halitosis.Originally posted by maurizio13:You are so equitable, comparing countries which have a higher GST (VAT), exempts basic necessities from GST (to help the poor) and provide welfare to it's citizens
Sweden has a general VAT rate of 25% and 12% for food. (http://www.invest.skane.se/brochures/The%20Swedish%20Food%20Retail%20Market.pdf) -
They provide welfare, I don't mind being tax at higher rates if you provide more welfare.
Hey! What's the meaning of P.Q.R.S.T.U. to you?
While similar in form to other governments in Western Europe, the Swedish state is among the most generous in the scope of government services provided. These include tax-funded childcare, parental leave, a ceiling on health care costs, tax-funded education (all levels up to, and including university), retirement pensions, tax-funded dental care up to 20 years of age and sick leave (partly paid by the employer). Parents are entitled to a total of 480 days partly paid leave between birth and the child's eighth birthday, with 60 days reserved specifically for each parent, in effect providing the father with two so-called "daddy-months". The ceiling on health care costs makes it easier, relative to other nations, for Swedish workers to take time off for medical reasons.
http://en.wikipedia.org/wiki/Sweden -
Cannot always increase GST la,increase this and that la,give us money when election time,wan us to vote,but in the end,what we paid back is even more. want to win election only den after that dunno who are you already. what is this man !!! blood sucker. only want money,think of the citizen hardship pls...
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Let it rise....
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Originally posted by lionnoisy:
you mean GST is good for the next generation?
Hong Kong cancel the proposal of GST.
Only history will tell if it is good for next generations.
Chart 3.3: Comparison of GST/VAT Rates Across Countries,p 24
...........0%.... 5%....10% ....15% ...20% ...25%
GST/VAT rates
Source: International VAT Monitor, March/April 2006, No.02, Article 8 –
Overview of General Turnover Taxes and Tax Rates
[b]BUDGET HIGHLIGHTS,Financial Year 2007[/b] -
According to the people at the top, increasing GST is to help the poor.Originally posted by dragg:you mean GST is good for the next generation?
If next generation equals "poor" then yes, increasing the GST is good. -
And yet Sweden has a much more generous baby bonus and also a larger welfare net. Plus, they are tangibles and not something wrapped up in tonnes of red tape and don't feel as if they are some half hearted attempt to convince people to procreate. Never mind that the Swedish still turn in a surplus in their economy from time to time. Never mind that the Swedish enjoy a dynamic economy and what not.Originally posted by oxford mushroom:What a joke...get your figures right before opening your big mouth again and polluting the air with halitosis.
Sweden has a general VAT rate of 25% and 12% for food. (http://www.invest.skane.se/brochures/The%20Swedish%20Food%20Retail%20Market.pdf) -
Now the tail is out....
increase in salary.... haha should have foresee that
How stupid of me -
if that is the case, arent we supposed to be angry they didnt implement gst in 1965?Originally posted by charlize:According to the people at the top, increasing GST is to help the poor.
If next generation equals "poor" then yes, increasing the GST is good.
our lives could have been better now. -
Don't wait till going to shit then look for toilet. so maybe it would be better to increase the GST to 20% now so that we can have more toilet to shit.Originally posted by dragg:if that is the case, arent we supposed to be angry they didnt implement gst in 1965?
our lives could have been better now. I support KK increase. -
The GST hike is to pay for ministers' pay rise lah
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We are more happy without the GST.
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I cant wait for the GST hike
So that people will know how to vote wisely in the next GE