An observation of the true impact of GST
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Dear all,
The GST was just upped to 7% on Sunday (congrats to all PAP supporters who don't understand the impact). I am making my observations of some of the issues of this GST rise, anyone is free to support/contest my views
1) GST up by 2% is NOT price increase by 2%
I find that quite a bunch of Singaporeans are really stupid in this. They think that, assuming a product is $10 (excludes 5% GST of 0.50) now, then the increase of the product price after GST implementation is by only $0.20 (since 7% GST of $10 is 0.70).
What they failed to understand is that in an end-product, there are many parts in the supply chain to this product.
- Some of the suppliers are not GST-registered, and thus they cannot claim GST from the govt, thereby passing the increase in GST costs from their suppliers to the next company in the chain. This will translate to an increase in costs for the next company, which will then filter down to the end-user.
- Changes in GST, results in system changes (for large companies) or admin costs for smaller companies in that they need to make changes to their processes to adopt the 7%. This results in higher costs for companies, and they pass it on by increasing their prices
2) Companies that sell items at prices such as $11.60, for example, cannot increase their GST amt to 7% exactly, becoz it will result in 1-cents, (for the above case, its rightfully $12.41), which most probably will round it UP ($12.45 or $12.50). Becoz Singapore doesn't use 1-cent anymore, the businesses round up prices to the nearest 5 cents
3) Some restaurants, such as Delifrance, round UP the cents to make more money (just check your receipt the next time you eat with them). They are so blatant that, even if you spent for example, $21.55 (AFTER GST), they will still round it UP to $21.60. That's why I don't eat from Delifrance. They DO NOT follow the laws of mathematics. $21.51 is STILL $21.60 (still round up)
4) Hawkers raise prices at $0.50 almost all the time. I see lots of increases already in the place I stay
End of the day, I think many people are going to suffer. The GST incentive the govt give you aren't going to last too long, given that increases are more than 2%. -
tats y some ppl doesn't realise that GST creates a ripple effect ending up with consumers who have to suffer
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know oso no use
just have to save up enough to leave this place for gd
ignorance is a bliss for most ppl -
You can read my other post in related article.
I finish all the money given liao, it was like so little...
But I will continue looking for more related and interesting things... -
a) Why cant the seller round off 12.41 to 12.40, why must it be 12.45 or 12.50? Are you assuming that buyers are stupid and most trade in Singapore are monopolised?
b) How delifrance round up or round down their pricing is a double edge swords and it doesnt really matter if there is 2 percent GST hike or not.
c) What do you mean by hawker raising price by $0.50 all the time? Care to name us a few hawker stalls which you claim have profiteer from the GST increase? -
This is not entirely right. It all depends on the companies in the supply chain. In short, i would prefer those in the lower chain to be non-GST registered and those above to be GST registered. And the more non-GST registered firms, the better it is.Originally posted by soul_rage:Some of the suppliers are not GST-registered, and thus they cannot claim GST from the govt, thereby passing the increase in GST costs from their suppliers to the next company in the chain. This will translate to an increase in costs for the next company, which will then filter down to the end-user. -
Care to explain your rationale.Originally posted by matleep:This is not entirely right. It all depends on the companies in the supply chain. In short, i would prefer those in the lower chain to be non-GST registered and those above to be GST registered. And the more non-GST registered firms, the better it is.
Interested to know your perspective of this supply chain, as its here that mostly prices change and result in consumer paying more -
Relax soul_rage....we have seen this time and again and by re-iterating it over and over again....it won't solve a thing...besides, the gahmen would not be in power if every Sillyporean were smart....there has got to be some stupid sillyporeans to tow the line.....best thing you can do is liek what many of us have done...emigrateOriginally posted by soul_rage:Dear all,
The GST was just upped to 7% on Sunday (congrats to all PAP supporters who don't understand the impact). I am making my observations of some of the issues of this GST rise, anyone is free to support/contest my views
1) GST up by 2% is NOT price increase by 2%
I find that quite a bunch of Singaporeans are really stupid in this. They think that, assuming a product is $10 (excludes 5% GST of 0.50) now, then the increase of the product price after GST implementation is by only $0.20 (since 7% GST of $10 is 0.70).
What they failed to understand is that in an end-product, there are many parts in the supply chain to this product.
- Some of the suppliers are not GST-registered, and thus they cannot claim GST from the govt, thereby passing the increase in GST costs from their suppliers to the next company in the chain. This will translate to an increase in costs for the next company, which will then filter down to the end-user.
- Changes in GST, results in system changes (for large companies) or admin costs for smaller companies in that they need to make changes to their processes to adopt the 7%. This results in higher costs for companies, and they pass it on by increasing their prices
2) Companies that sell items at prices such as $11.60, for example, cannot increase their GST amt to 7% exactly, becoz it will result in 1-cents, (for the above case, its rightfully $12.41), which most probably will round it UP ($12.45 or $12.50). Becoz Singapore doesn't use 1-cent anymore, the businesses round up prices to the nearest 5 cents
3) Some restaurants, such as Delifrance, round UP the cents to make more money (just check your receipt the next time you eat with them). They are so blatant that, even if you spent for example, $21.55 (AFTER GST), they will still round it UP to $21.60. That's why I don't eat from Delifrance. They DO NOT follow the laws of mathematics. $21.51 is STILL $21.60 (still round up)
4) Hawkers raise prices at $0.50 almost all the time. I see lots of increases already in the place I stay
End of the day, I think many people are going to suffer. The GST incentive the govt give you aren't going to last too long, given that increases are more than 2%.
Better to watch all the goings on in Sillypore from a distance and how they will run themselves to the ground and just have a good laugh after that.....more practical to take care of yourself first -
As mentioned, its my observationsOriginally posted by Gazelle:a) Why cant the seller round off 12.41 to 12.40, why must it be 12.45 or 12.50? Are you assuming that buyers are stupid and most trade in Singapore are monopolised?
b) How delifrance round up or round down their pricing is a double edge swords and it doesnt really matter if there is 2 percent GST hike or not.
c) What do you mean by hawker raising price by $0.50 all the time? Care to name us a few hawker stalls which you claim have profiteer from the GST increase?
a) yes, the fact is, many would round up, and most people wouldn't notice
b) If the GST was 5%, there will not be the 1-cent problems (1-cent, 2-cents, 3-cents, 4-cents, 6-cents, 7-cents..). People find it hard to transact in cents, so there are businesses who profit from it by rounding up (actually I am interested to know how they report their GST, since they first compute GST in the bill, then ROUND UP, which technically means that they are paying lesser GST than supposed to)
c) Do you need me to name for you? I think you should have heard of the $0.50 increase in price that is always evident in hawker price increases a long time ago. Its up to you whether you wish to accept that its almost always true.
as above, these are my observations. So don't go about asking me for statistics. People who see with their hearts can see the change. Those who see with their eyes (such as those who read the ST and read about people being happy with the GST incentive) will never be able to see the changes. -
My place the hawker center you tiao (fried dough fritters) used to be 40 cents, on July 1st, they raised it to 50 cents, an increase of 25%.Originally posted by soul_rage:As mentioned, its my observations
a) yes, the fact is, many would round up, and most people wouldn't notice
b) If the GST was 5%, there will not be the 1-cent problems (1-cent, 2-cents, 3-cents, 4-cents, 6-cents, 7-cents..). People find it hard to transact in cents, so there are businesses who profit from it by rounding up (actually I am interested to know how they report their GST, since they first compute GST in the bill, then ROUND UP, which technically means that they are paying lesser GST than supposed to)
c) Do you need me to name for you? I think you should have heard of the $0.50 increase in price that is always evident in hawker price increases a long time ago. Its up to you whether you wish to accept that its almost always true.
as above, these are my observations. So don't go about asking me for statistics. People who see with their hearts can see the change. Those who see with their eyes (such as those who read the ST and read about people being happy with the GST incentive) will never be able to see the changes. -
The singapore govt is culturing this kind of singaporeans its not strange ...Originally posted by maurizio13:My place the hawker center you tiao (fried dough fritters) used to be 40 cents, on July 1st, they raised it to 50 cents, an increase of 25%. -
U should observe the hawker centre in heartland so pitiful after increase price, some automatically close for good.Originally posted by maurizio13:My place the hawker center you tiao (fried dough fritters) used to be 40 cents, on July 1st, they raised it to 50 cents, an increase of 20%. -
Okay.....now we seen the hike in GST, where is the so proposed helps for the poor ??? -
hang on minister pay first, then breadcrumbs give to the poor.Originally posted by miserable:Okay.....now we seen the hike in GST, where is the so proposed helps for the poor ??? -
tea up 10 cents from 70 cents. (14% increase)Originally posted by maurizio13:My place the hawker center you tiao (fried dough fritters) used to be 40 cents, on July 1st, they raised it to 50 cents, an increase of 25%.
bowl of mushroom noodles up 50 cents from $2.00 (25% increase)
western food up 30 cents from $4.50 (7% increase)
western food up 50 cents from $4.50 (11.1% increase)
I know what Gazelle is going to say next. He will say there is no proof whatsoever that the increase is due to GST, despite the FACT that these stalls increase prices on/close to GST raising day -
Soul_Rage, if your intention here it to help the poor, I would suggest that you write to the government and highlight to them that the concerning hawker you mention are profiteering from the GST hike. Unless of couse you are just here to talk co,ck sing song,Originally posted by soul_rage:tea up 10 cents from 70 cents. (14% increase)
bowl of mushroom noodles up 50 cents from $2.00 (25% increase)
western food up 30 cents from $4.50 (7% increase)
western food up 50 cents from $4.50 (11.1% increase)
I know what Gazelle is going to say next. He will say there is no proof whatsoever that the increase is due to GST, despite the FACT that these stalls increase prices on/close to GST raising day -
*yawns* if you have nothing to add, and think that the GST hike is justified, why don't you explain your stance instead?Originally posted by Gazelle:Soul_Rage, if your intention here it to help the poor, I would suggest that you write to the government and highlight to them that the concerning hawker you mention are profiteering from the GST hike. Unless of couse you are just here to talk co,ck sing song,
As I mentioned, I am highlighting my observations. Whatever intention I have is for me to know, I don't have to explain myself to you. -
hard to explain. but basically if every company is GST-registered, then we pay only 7% GST. Depending on the situation, we could pay more than 7% or even less than that. let me show a situation where it is less.Originally posted by soul_rage:Care to explain your rationale.
Interested to know your perspective of this supply chain, as its here that mostly prices change and result in consumer paying more
Company A, a non GST-registered company, buys its goods for $107 which $7 is GST. He sells them for $207. So only $7 is paid as GST and the selling price is $200. Thus, GST is only 3.5%! -
cigarette up by 40 cents
old cairport stalls up by 50 cents after reno -
Geez! Nazi these days don't even allow you to state observations in forums. I wonder if he has a swastika tatooed on his forehead.Originally posted by soul_rage:*yawns* if you have nothing to add, and think that the GST hike is justified, why don't you explain your stance instead?
As I mentioned, I am highlighting my observations. Whatever intention I have is for me to know, I don't have to explain myself to you.
I would say it's a case of double standards, when they state their observations, it's ok, when someone states their observation, they are being told off. -
time to quit smoking lah..Originally posted by LinYu:cigarette up by 40 cents
old cairport stalls up by 50 cents after reno -
soul_rage, I dont really care too much about your intention in this forum, however what I am tell you is IF what you claim is true, I think you should report to the authority, and dont be a sissy posting useless article in this forum.Originally posted by soul_rage:*yawns* if you have nothing to add, and think that the GST hike is justified, why don't you explain your stance instead?
As I mentioned, I am highlighting my observations. Whatever intention I have is for me to know, I don't have to explain myself to you. -
Originally posted by Gazelle:
If you "think" that whatever soul_rage said is false, then I think that it's you that should report to the authorities.
soul_rage, I dont really care too much about your intention in this forum, however what I am tell you is [b]IF what you claim is true, I think you should report to the authority, and dont be a sissy posting useless article in this forum. [/b]
What are you trying to do here? Make more Singaporeans stupid like you. Please Singapore cannot afford another person like you, we are suffering from brain drain due to migration already. -
1) How many people, consciously or otherwise, actually bother to keep in mind (or even know in the first place) that GST is only applicable to businesses whose revenue exceeds S$1 million in a given year? Technically, many commercial entities (ie.hawkers, etc) do not actually collect S$1 million in revenue to begin with and would have no business to pass on any GST costs to the consumer. That said, as with any other theoretical legislations which can never be practically and efficiently enforced, increasing prices on the pretext of an increase in operational cost is more than a sufficient excuse required for profiteering. Throw in a regime so desperate for money with little regard for safeguarding consumer interests (not at the expense of businesses anyway) and what you see is effectively the ripple-effect of ill-conceived policies.Originally posted by soul_rage:1) GST up by 2% is NOT price increase by 2%
I find that quite a bunch of Singaporeans are really stupid in this. They think that, assuming a product is $10 (excludes 5% GST of 0.50) now, then the increase of the product price after GST implementation is by only $0.20 (since 7% GST of $10 is 0.70).
What they failed to understand is that in an end-product, there are many parts in the supply chain to this product.
- Some of the suppliers are not GST-registered, and thus they cannot claim GST from the govt, thereby passing the increase in GST costs from their suppliers to the next company in the chain. This will translate to an increase in costs for the next company, which will then filter down to the end-user.
- Changes in GST, results in system changes (for large companies) or admin costs for smaller companies in that they need to make changes to their processes to adopt the 7%. This results in higher costs for companies, and they pass it on by increasing their prices
2) Companies that sell items at prices such as $11.60, for example, cannot increase their GST amt to 7% exactly, becoz it will result in 1-cents, (for the above case, its rightfully $12.41), which most probably will round it UP ($12.45 or $12.50). Becoz Singapore doesn't use 1-cent anymore, the businesses round up prices to the nearest 5 cents
3) Some restaurants, such as Delifrance, round UP the cents to make more money (just check your receipt the next time you eat with them). They are so blatant that, even if you spent for example, $21.55 (AFTER GST), they will still round it UP to $21.60. That's why I don't eat from Delifrance. They DO NOT follow the laws of mathematics. $21.51 is STILL $21.60 (still round up)
4) Hawkers raise prices at $0.50 almost all the time. I see lots of increases already in the place I stay
End of the day, I think many people are going to suffer. The GST incentive the govt give you aren't going to last too long, given that increases are more than 2%.
3) Though not entirely relevant, there's actually an underlying rationale behind it. In most parts of Europe and the US, for instance, you do not actually have "official" policies whereby things like "service charges" are levied in restaurants. However, most customers - on their own free will - would take the initiative to "tip" (pretty generously, I must add) and it's a gesture which is expected from the party rendering the service (be it a waiter or a cab driver). In many parts of Asia, however, such tipping cultures are not prevalent and you see "service charges" (something I personally don't endorse as I'd much rather favour the tipping system where you're not duty-bound to tip, but that's another matter) being levied instead. In view of such " inked-on-paper " policies, I would imagine it only fair then that consumers be charged for whatever "explicitly stated" charges and they be billed right down to the cent and nothing more. What seperates other countries adopting such tangible policies of billing from Singapore is indeed the rounding off process. I concur with you that it is indeed another "uniquely Singapore" scam that many business entities which actually levy explicitly-stated charges have actually got the audacity to shamelessly profit further by rounding up - instead of rounding off - the costs passed on to the consumer. I suppose the least you could do is boycott such merchants.
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Sometime I really do not understand what those people are thinking about ? Bet the next month CPI (Comsumer Price Index) will show up an big increase thus higher inflation. Is this good for economy or the general public ? Of course,the rich will benefit as their properties will show an increase in price, value I doubt so.
We are actually bucking the global trend, Countries like US are lobbying for lower interst rate at the slightest hint of lower inflation. aggressively proposing the higher tax rate for the richs and hedge funds as to narrow the gap between the rich and the poor.
Even China where we saw the booming economy are doing the same. Fiscal measures such as hiking of interest and opening the chinese saving for investment abroad as to not blown out the inflation. They also increase their minimum wage as to narrow the income gap.
Here, what i see is creating a slowdown in our economy while creating higher inflation for the peoples. Indirectly cause a the income gap to widen
Please enlighten me if you think otherwise. Of course, using logical augment.