Did the 4% GST really affected us?
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I was really worried with the increase in GST. But it has been 2 weeks into the new year and yet i see that in most cases I am not very affected by the increase. Most foodcourts did not increase their prices. Many small retail outlets did not increase also. So are we really affected?
Anyway, if these small items, daily expenditure is not increased...then we should be quite ok what... i think its time we stop depending so much on the government and depend on ourselves. Cut down on expenses...but of course there will be cases where people will still suffer because of all these increment but how many, frankly? I think out of 10 singaporeans, 8 or 9 would still be living quite well, though not as good as last time. We just need to adjust lah...
Anyway increasing GST is for long term benefits to our country's economy which will be difficult to explain becos to be frank whats immediate is more important for pple like us but then our government needs to see Singapore survive in 50 yrs, 100 yrs, 200 yrs.. just ask urself, in these times of economic slump, did we really suffer as much as other countries did? i think government has done quite a good job here. -
im not affected
except for tt few cents more when i go to restaurants...... -
The impact will come soon...
Guess 1% is hard to feel, and most are absorbing the 1% or some even the 4% now...
Let's hope economy gets better soon.
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Collecting GST is like taking small teaspoon of water out from a Big Bath Tub.
After a while, the bathtub will have only half (or lesser still) of the water left.
Then to allow for a good satisfactory bath, more water has to be returned (ERS), so that hopefully the water can reach a higher level, so that more teaspoonful of water can be taken out of the bathtub again - later.
With each teaspoonful of water taken periodically, no one will see the water level drop suddenly.
However, over time, the water level must drop.
GST was first introduced to allow for a tax collection system that will cover every single person who has money to spend – which means that if you have money to spend but "miss" paying Income Tax, and NEVER pay income tax; then THIS TIME with GST, you will pay tax each time you spend your money.
This was compared to the previous tax payment system when it was calculated that at least 25 percent of the population do not pay tax, as they are self-employed, or do not have a steady occupation to report any income return.
Hence, there was a leak in the Tax Collection System.
However, when the 3 Percent GST was first introduced, the Government was not prepared to have a Budget Surplus from its GST Tax collection that amounted to over S$1 Billion at the end of the first GST Collection Year.
It was a "surprise".
This 3 Percent GST Collection System had a positive revenue report at the end of every Financial Year since its implementation.
With an increase of the 3 Percent GST by an Additional ONE Percentage Point, it has effectively increased it by 33.3333 Percent.
This means the previous surplus of S$1 Billion, will increase by 33.3333% to an additional sum of S$1,333,333,300 by simply changing GST from 3% to 4%.
Even with the earlier Tax Collection System (before GST), the Government was able to accumulate Budget Surpluses at the end of every Financial Year, which resulted in our National Reserve reported to be at least US$100 Billion.
Now that the Singapore Economy has gone into another recession within 5 Years, and with more Citizens expected to loose jobs until mid-2003, it is surprising that the Government should increase the GST instead of relaxing its collection to an already bloated reserve.
By mid-2003, unemployement is anticipated to increase by another 0.5 percent more, adding to an already big pool of 4 percent jobless from a population of 4,500,000.
While Workers' Salary and CPF has been cut, increases have been made on charges for Public Transport, Electricity, Water, Postage, Telephone, Hospital Fees, and some other miscellaneous Government Services - including Court Hearing Time.
One seriously wonder if the Government has not started a ‘self-contradictory’ policy that takes more money out of circulation from the Economy, while at the same time is trying to encourage Entrepreneurship from its Citizens. -
yah we must see that if the gst increase from 3% to 4%, it is actually an increase of 33% in gst although the government says it is merely 1% point increase. gst is big money business for them, just like coe.
if we spent $1000 on gst in 2002, and assuming we would have bought the same items in 2003, it means we spend $1333 instead in 2003 with the 33% increase in gst. $333? that's a one person plane and hotel inc trip to bangkok or bali today. that means with the gst increase by only 1% point, the government is depriving us a short holiday each year for every $1000 spent on gst. -
I went to Cheers that day and bought a chocolate for $1.42
I guess they have increased the price, but they didn't charged me the 2 cents. I think because singapore has stopped using 1 cent coins.. and maybe Cheers absorbed the extra 1% gst. -
____________________________________________________Originally posted by whack:yah we must see that if the gst increase from 3% to 4%, it is actually an increase of 33% in gst although the government says it is merely 1% point increase. gst is big money business for them, just like coe.
if we spent $1000 on gst in 2002, and assuming we would have bought the same items in 2003, it means we spend $1333 instead in 2003 with the 33% increase in gst. $333? that's a one person plane and hotel inc trip to bangkok or bali today. that means with the gst increase by only 1% point, the government is depriving us a short holiday each year for every $1000 spent on gst.
You are right...!!!
Hooray....You got the Picture...!!! -
but the thing is ah, look at the everyday things we are buying currently, which ones actually raise their prices due to the GST hike? I mean not many rite? so unless u are buying alot of expensive stuff or bigger retail goods like electrical goods etc...then maybe u feel the hike, in which case, you shldnt be buying since u got no money...Originally posted by whack:yah we must see that if the gst increase from 3% to 4%, it is actually an increase of 33% in gst although the government says it is merely 1% point increase. gst is big money business for them, just like coe.
if we spent $1000 on gst in 2002, and assuming we would have bought the same items in 2003, it means we spend $1333 instead in 2003 with the 33% increase in gst. $333? that's a one person plane and hotel inc trip to bangkok or bali today. that means with the gst increase by only 1% point, the government is depriving us a short holiday each year for every $1000 spent on gst.
i always see pple complain no money but then go shooping is like free one, no money can change car, no money everyweek go restaurant eat, guess its time we be more contented and live a more simple lifestyle. -
Mathematically the 33.33% is the increase in the percentage point of 1% increase from 3% to 4%.Originally posted by whack:yah we must see that if the gst increase from 3% to 4%, it is actually an increase of 33% in gst although the government says it is merely 1% point increase. gst is big money business for them, just like coe.
if we spent $1000 on gst in 2002, and assuming we would have bought the same items in 2003, it means we spend $1333 instead in 2003 with the 33% increase in gst. $333? that's a one person plane and hotel inc trip to bangkok or bali today. that means with the gst increase by only 1% point, the government is depriving us a short holiday each year for every $1000 spent on gst.
cos (4-3)/3 = 1.3333 == which accounts for the 33.33% increase,
In absolute value, what was $1000 spent in 2002 would yield $30 in GST
In 2002, $1000 spent == $30 GST
In 2003, $1000 spent == $40 GST
So (40-30)/30 = 0.3333 == 33.33% in the increase in absolute value.
However, if we look at it this way...
in 2002, we paid $1030 for Item A wif GST
In 2002, we paid $1040 for item A wif GST increase to 4%
Hence the increase = (1040-1030)/1030 = 0.0098 == 1%
we cannot argue that the item is 1000, we have to take the base as 1030. 3% GST has been already implemented some time back liao, and should be taken as the base to start with. -
degree course in 2002 is $21000 witout GST so 3% GST is $630 ...
degree course in 2003 is $21000 witout GST so 4% GST is $840.....
so increase n impact is $210 -
____________________________________________________Originally posted by gasband:but the thing is ah, look at the everyday things we are buying currently, which ones actually raise their prices due to the GST hike? I mean not many rite? so unless u are buying alot of expensive stuff or bigger retail goods like electrical goods etc...then maybe u feel the hike, in which case, you shldnt be buying since u got no money...
i always see pple complain no money but then go shooping is like free one, no money can change car, no money everyweek go restaurant eat, guess its time we be more contented and live a more simple lifestyle.
Well the Seller may not charge you for the GST that the Seller pay to his Middleman, but you are paying also, as the Seller may have a very high profit in his selling price to you.
The sugar cane seller will still sell every glass at $1.00, as he will not bother to charge you $1.04 for one glass.
Maybe the second round, when the GST reach 5 Percent, then he will charge $1.10 - because he will say that he did not charge 4 cents the last time, and so now with GST 5%, he has a right to charge total of 9 cents.
Very clever maths....no???
But actually due to forgetful people who think nothing of ONE cent. -
have u started your course yet?Originally posted by Xiao Long Nu:degree course in 2002 is $21000 witout GST so 3% GST is $630 ...
degree course in 2003 is $21000 witout GST so 4% GST is $840.....
so increase n impact is $210 -
noOriginally posted by sgboy2004:have u started your course yet? -
___________________________________________________Originally posted by sgboy2004:Mathematically the 33.33% is the increase in the percentage point of 1% increase from 3% to 4%.
cos (4-3)/3 = 1.3333 == which accounts for the 33.33% increase,
In absolute value, what was $1000 spent in 2002 would yield $30 in GST
In 2002, $1000 spent == $30 GST
In 2003, $1000 spent == $40 GST
So (40-30)/30 = 0.3333 == 33.33% in the increase in absolute value.
However, if we look at it this way...
in 2002, we paid $1030 for Item A wif GST
In 2002, we paid $1040 for item A wif GST increase to 4%
Hence the increase = (1040-1030)/1030 = 0.0098 == 1%
we cannot argue that the item is 1000, we have to take the base as 1030. 3% GST has been already implemented some time back liao, and should be taken as the base to start with.
Shouldn't the calculation of percentage GST increase be based from the starting GST 3%, and not from the applied value of the goods being affected ?
4 - 3 / 3 = 0.333333
and not
1040 - 1030 / 1030 = 0.00976 -
How about the absolute increase??Originally posted by Atobe:___________________________________________________
Shouldn't the calculation of percentage GST increase be based from the starting GST 3%, and not from the applied value of the goods being affected ?
4 - 3 / 3 = 0.333333
and not
1040 - 1030 / 1030 = 0.00976
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yah some shop keepers increase their price nt according to 4%...they cos one more percent is still cent hw to charge...imagine...
a pen is $1.99 in 2002 (with 3% GST) then nw they should sell $2.01 (with 4% GST) ..........bt they will rather sell it at $2.05 round off...(if round off who will be stupid to round off to $2.00...sure lugi...) with $2.05 the shopkeeper has increase it by around 3% instead of 1%... ji shao cheng duo.....
imagine...one pen they earn $0.04 then 1000 00 pens they earn $4000 and imagine is those restaurant food...wow...can earn alot -
but dun forget when they buy the goods from the supplier, they hav to pay 4% too wat...so even off liao lor...Originally posted by Xiao Long Nu:yah some shop keepers increase their price nt according to 4%...they cos one more percent is still cent hw to charge...imagine...
a pen is $1.99 in 2002 (with 3% GST) then nw they should sell $2.01 (with 4% GST) ..........bt they will rather sell it at $2.05 round off...(if round off who will be stupid to round off to $2.00...sure lugi...) with $2.05 the shopkeeper has increase it by around 3% instead of 1%... ji shao cheng duo.....
imagine...one pen they earn $0.04 then 1000 00 pens they earn $4000 and imagine is those restaurant food...wow...can earn alot -
mayb supplier count cheap cheap for themOriginally posted by sgboy2004:but dun forget when they buy the goods from the supplier, they hav to pay 4% too wat...so even off liao lor... -
sure can make a bit of profit...if not open shop for wat...is just how much the profit will be...Originally posted by Xiao Long Nu:mayb supplier count cheap cheap for them -
____________________________________________________Originally posted by sgboy2004:How about the absolute increase??
When a charge of GST 3 percent is levied on $1000 there is already a collection of $30, which at the end of each Financial Year has led to tax surpluses.
By adding another 1 PERCENT onto the GST 3 percent, to make a charge of GST 4 percent, although the nett difference in increase is only $10.00; it will add to a larger Suplus at the end of the Year in which GST 4 percent is collected.
Abosolute increase is acceptable to the one who implements the policy to make it palatable to those who has to pay.
However, when the truth is known, it will be shocking when there is an even bigger Tax Suplus at the end of the Financial Year.
Is the Government never ever satisfied in squeezing the already hard pressed citizens, who need to save every single cent in preparation for retrenchment that can occur at any time ?
After collecting a further billion Dollar, how does it benefit each Singaporean, when the handout averages only $400 per Citizen ?
How long does $400 last in a Year, in the Singapore environment ? -
considering that if 1.5million people is eligible in our 3 million citizens (not counting the other 1 million who mite be PR or wat), it is a sizeable 600 million they are giving out.
I mean no one is denying the increase in price. Everything increases anyway. You may find it hard to believe, but what Singapore achieve today has alot to do with all these "SURPLUS" you have been lamenting about. Alot may feel tat they are sacrificing the poorer people. I can tell you that my household income is less than $2500. you can hardly call that rich or even above average. but i guess in our family, we believe in being contented, if we have $10, we eat $10, if we have $2, we eat $2, no complaints.
the other thing, i mean is that, ARE you really affected as in, you see your monthly expenditure spiralling out of proportion, i mean when i go foodcourt, when i go shopping, when i go grocery shopping and in many places, i find my expenditure pretty much the same as when it was 3%...of course when it goes to 5%, 6%, 10% the impact will be as great now, thats the reason why we are given time to adjust to it. Do you remember the times when bus fares are just 15cents? when it was to be increased, everyone complains and it is natural but if the increase is gradual and necessary, MOST of us are coping quite well with the increment isnt it? Adjustment is the key word here. -
The hell it affected me.
Now small copies of Chuang Yi comics are going for $5 instead of the usual $4.80
Money suckers
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The "Absolute Increase" is for the Politicians to sell this simpleton's idea to the ignorant Public, that the increase is ONLY One Percent.
What about the NETT EFFECT to the Revenue that is being collected ????
Should one be interested in the theoretical aspect of the ONE Percent "Absolute Increase", or the NETT Effects of this increase being 33.3333 Percent Increase ?? -
hmmm, ok take it as we are ignorant..then how? u become prime minister lah i support, zero taxes, free hdb flats, see how ur government can make singapore survive.Originally posted by Atobe:The "Absolute Increase" is for the Politicians to sell this simpleton's idea to the ignorant Public, that the increase is ONLY One Percent.
What about the NETT EFFECT to the Revenue that is being collected ????
Should one be interested in the theoretical aspect of the ONE Percent "Absolute Increase", or the NETT Effects of this increase being 33.3333 Percent Increase ?? -
____________________________________________________Originally posted by gasband:hmmm, ok take it as we are ignorant..then how? u become prime minister lah i support, zero taxes, free hdb flats, see how ur government can make singapore survive.
Before GST was implemented, Singapore was able to accumulate a Reserve of over US$99 billion - as was reported OFFICIALLY.
Unofficially, the reserve is speculated to be double this amount.
How was this Reserve accumulated ?
By the old method of Income Tax.
With the introduction of GST 3 Percent, the Annual Tax Surplus was found to be even more than the old Income Tax collection scheme. The tax collection surplus was so large in the first year of GST implementation, that the Government was embarrassed, and had to give back the large takings by issuing Singapore Shares.
The GST 3 Percent had to collect more than the old Income Tax collecting scheme, as the GST will affect everyone during the consumption stage.
At GST 3 Percent, the annual tax surplus had shown positive net result every year since the Year it was introduced.
With an existing large National Reserves, and an already effective annual tax surplus occurring - why should we increase GST 3 Percent by another ONE Absolute Percent, which has a nett effect of increasing revenues by 33.3333 percent for the Government..?
Why should GST be increased by 33.3333 Percent during this time of economic downturn - when the public should be saving for their possible retrenchment ?
Why will the Government not cut its own costs by paring down its own operating expenses - "Over Paid Under Performing" Ministers and Government Staff, Bloated Government Departments, Excesses and Wastage in Government expenditures, Government deep involvement in real estates (with each Ministry building their own "palaces" ?
Will the Government look carefully into the manner that GIC has invested the National Reserves overseas and give a clear accounting as to how much has been lost or gained - since its ventures overseas - in Australia, China, Europe, Hong Kong, India, Indonesia, Japan, Myanmar, Malaysia, Philippines, Russia, and its ex-Soviet satellite states in Central Asia, South Africa, South America, UK and USA...???
NOTE: No one is advocating [color=red]ZERO tax[/color].