Singapore - Increase Good Service Tax to help the poor

shenyl

This news of offering help to the poor by increasing the current GST from 5% to 7%, is said by the Prime Minister (quoted on ST Nov 2006), to help accumulate fund to help the poor.

I do not know if it makes sense to increase tax on the poor, and at the same time to help them?

GST affects everyone who eats, drinks, stays in the country - poor, middle-income, rich. An increase of 2% on a poor citizen who spend 400 dollars a month is 8 dollars more, and for a rich family who spend 100,000 dollars a month is 2000 dollars. The 8 dollars increase is to the poor probably an equivalent of 3 days meal.

otiscom

If the tax is levied from the people earning over a certain amount (say over 400 a month), AND is chaneled directly to helping the poor, it's OK.
Unfortunately governments have a nasty habbit of putting all taxes in to one pot and not ring fencing it.

Alankurd

well its a little price to pay because the can fead poor people but i wonder if all the money really gets to the poor just like the dude above me said.
its a good idea but if all the money really reaches the poor ppl

ahamed

quite controversial way to help poor people ... in-fact raise in tax largely effect on poor people , and u can't help them putting in more trouble ...

shenyl

To clarify the GST is indeed impose not based on your earning power, but Goods and Service Tax is imposed on everything you buy (water, electricity, gas, food, education, transportation, etc).

Poor and rich alike, all have to pay the increase 2% (from 5% to 7%).

There is a Singapore law, that any Internet information that may harm the nation, one can be persecuted by the Singapore Law (of course only for those staying in Singapore).

I have reminded others that we live in a boundless world through the Internet, but now I do have national boundaries in the Internet.