And constructive, nation-building MediaCorp:While the Government has raised income tax rates for top earners in Singapore for a more progressive tax system, taxes paid by a broader swathe of Singaporeans, such as the Goods and Services Tax (GST), will probably go up in the coming years to pay for social spending, said tax experts and economists.
The GST could go up after next year to 9 or 10 per cent, in line with the Asia-Pacific average. Other taxes the Government could raise include consumption taxes, stamp duties and property taxes, they said. (CNA)
Err, wonder if Mr Koh and the MediaCorp executives are secretly rooting for the SDP which said around the same time:The people must also beware that while the Government makes these concessions before the elections, it can always make the money back after the next GE through a myriad of taxes, fees and levies.
Is Jos Teo also a subversive and secret SDP member?
Jos Teo double confirms GST rise?
At a forum on 26 Feb organised by government feedback unit Reach to discuss Budget 2015, Senior Minister of State for Finance and Transport Josephine Teo said that Singapore is in the unusual position of being able to tap more sources of revenue to fund its increased spending needs.
“Many other countries around the world actually need additional revenue sources to help pay for programmes that benefit citizens, but not that many have the courage to raise taxes,” she added.
“But we think that it is the responsible thing to do.”
Seriously, it’s very, very important, as I said last week, to ask loudly and at every appropriate opportunity :“After GE, will the PAP administration raise GST rates and by how much?”
The answer, we should want to hear is what Tharman said in 2011 about future GST rises:“As Finance Minister, I have made that very clear in Parliament that at least for the next five years – it does not mean we will raise it in five years’ time – but at least for five years, there is absolutely no reason to raise the GST, because this was the whole idea – we strengthen our revenue base in time. (CNA)
If we don’t get this answer, then we can expect GST rises after the GE, as sure as Zorro smiles at his monthly CPF statement everytime he receives it.
If we get this answer , then this lady is right:Ernst & Young Solutions head of tax Chung-Sim Siew Moon does not expect a hike in the GST before 2020. “The minister has indicated that the revenue measures that have been put in place will be sufficient for the increased planning needs until the end of the decade,” she noted.
But in the long term, we have to be be realistic if we want more welfare for the born-loser cybernuts who expect something while biting the hand that feeds them: Nanyang Technological University economist and Assistant Professor Walter Theseira said taxpayers can expect to pay more in the medium and long term, with higher-income earners contributing a larger share. The proceeds can fund social initiatives to help the unemployed, and support medical expenses and retirement provisions for middle- and lower-income groups.
This story was first published on Thoughts of a Cynical Investor.
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