RONALD LEE: State media has a field day reporting on how GST in Singapore is among the lowest in the world, how some will receive 10x the amount the pay in extra GST, etc.
One question though – state media also reported that the poor will be least impacted by a GST hike (which we do not agree). But going by their logic, why then must so much be used to help the poor? It doesn’t make sense, does it?
This is how a GST will really impact Singaporeans, at a time when money is already tight:
(1) Food Prices
This will rise because there is an extra tax all the way down the supply chain. Remember when a certain minister went live and said that an increase in water prices would not affect the price of food? We all know what happened after that.
(2) Utility Bills
Don’t forget, GST is a tax on goods AND services. Be prepared to pay more for your monthly water, electricity, waste disposal bills etc. And this is on top of price hikes already implemented recently.
(3) Housing Prices
Remember that this is subject to GST, and so are all the services along the way that you will need before you buy the house. And then there is renovation cost, on which you will also be taxed further because just like food, there is an extra all the way down the supply chain. No business is going to take a loss just so you can have your nice tiny home.
(4) Online Shopping
Yes, cheapos, it’s not going to get any cheaper. Already, GST has been implemented on online purchases because, by the government’s logic, it wants to “level the playing field” between online retailers and physical stores. Erm, by making consumers pay an extra tax? Now that tax is set to go higher, and your wallet balance is set to go lower.
Ride services, delivery services, yeah they’re GST-registered entities. And the rise in carbon tax. So good luck with that extra hole in your pocket. Oh, did we mention that ComfortDelGro already just raised taxi fares, even before the GST hike? Just wait for the next Public Transport Council’s fare revision and we’ll see how much the next fare hike is going to cost.
Just remember, if you’re feeling the pinch, you can talk to your Mayor. After all, they’re collectively earning over S$4 million a year to be glorified grassroots workers. They should be able to help you, right?