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GST increase in Singapore
Posted by Economics Corner
on
8:33 AM
Something for you to think about:
Tax all equally, but... February 07, 2007
Why it works: The extra GST revenue, amounting to $1.5 billion annually, will be used to fund areas like education, health care and transportation. It will also enable the Government to cut corporate taxes to draw more investors.
The Government has promised a 'comprehensive offset package' to help the needy.
Why it may not work: The GST is a regressive tax. While the rich may not feel the pinch of the hike, every dollar counts for the needy. The higher cost of living will hit the poor harder. GST will always be with us but the offsets might not last, argue critics.
Source: http://newpaper.asia1.com.sg/news/story/0,4136,122804,00.html?
Tax all equally, but... February 07, 2007
Why it works: The extra GST revenue, amounting to $1.5 billion annually, will be used to fund areas like education, health care and transportation. It will also enable the Government to cut corporate taxes to draw more investors.
The Government has promised a 'comprehensive offset package' to help the needy.
Why it may not work: The GST is a regressive tax. While the rich may not feel the pinch of the hike, every dollar counts for the needy. The higher cost of living will hit the poor harder. GST will always be with us but the offsets might not last, argue critics.
Source: http://newpaper.asia1.com.sg/news/story/0,4136,122804,00.html?
Points to think about:
1. Reasons for the increase in GST.
2. How does it help the government to achieve its aims?
3. What is a regressive tax?
4. Why would be people worried about the increment in GST?
5. Do you think the incidence of tax will be more on the producers or the consumers?
6. What are the safety measures which the government can adapt to cushion the adverse impact of the increment in GST?
