Tuesday, May 15, 2007

GST increase

Due to a 2% increase in the Goods-and-Services Tax (GST), the Singapore Government announced a S$4 billion GST Offset Package during the 2007 Budget.

The package will be spread out over a four year period and will cover over two million Singaporeans. The GST credits will only be given out from July 1st as the GST increase will only be in effect from that date. What I want to know is why must there be an increase in GST in the first place? The answers the government gave just make no sense. The government is not in need of the extra cash, so why are we paying the extra GST for? To pay for the increase in minister's pay? I'm not going to say let's be understanding to normal Singaporeans, but there is no real need to increase the GST. The Singapore reserves are growing at good rate (as usual), and there's no special need for the extra cash the increase will bring in, so why the increase?

The GST package may shut people up with the complains but the Singapore government should still explain the increase better.

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