14 Nov 2006

Two Unrelated Matters - GST Increase and Corporate Tax Decrease

Associated Press

Singapore's goods and services tax will be increased by 2 percentage points 7 percent to finance social programs and help people with low incomes, local media cited the prime minister as saying Monday.

Lee Hsien Loong told Parliament that the GST will be raised from 5 percent to 7 percent, ChannelNewsAsia reported.

The details of the tax changes will be announced in the budget in February.

Lee said the GST report would come with a package weighted in favor of lower income Singaporeans.

"When we implement the GST increase, it's not a GST increase, it's a package which will fully offset the impact of GST for these groups and begin to strengthen the safety nets and tilt the balance in favor of the lower income Singaporeans," said Lee, according to radio station 938Live.

Lee also said income tax rates could be lowered in future, 938Live reported.

The radio station also reported that Lee said Singapore's constitution will be changed to allow the government to tap capital gains on state reserves.


And according to the government controlled media - a completely un-related matter which has absolutely nothing to do with the article above...

Singapore to cut corporate tax rate - media
14 November 2006

SINGAPORE: Singapore is prepared to cut its corporate tax rate to remain competitive in the global race for investments, Prime Minister Lee Hsien Loong was quoted by local media as saying.


Mr Lee said Singapore might have to adjust its current 20 per cent corporate tax rate if Hong Kong moved to lower its own 17.5 per cent rate, the Straits Times reported.

Mr Lee made the comments in parliament on Monday, where he also revealed plans to raise the Goods and Services Tax (GST) to 7 per cent from the current 5 per cent.

The Hong Kong government has proposed a GST to broaden its tax base, and says reductions in income or profits tax, or even both, would accompany any introduction of such a tax. But it is facing mounting public opposition to its plan.

"Hong Kong is competition for us," he said. "If they do a GST, they may decide to bring their corporate tax down. We may have to follow them down."


Say 'NO' to the GST Hike. Sign the Petition.

15 comments:

Calvin aka Yamada Shun 山田駿 said...

Does signing that petition really works? No one cares a shit

Anonymous said...

I'm signing this although I don't know if it'll really work since 66.6% of Singaporeans will just take whatever is stuck up their arse.

The 66.6% needs to be culled! Lol~

antipathy said...

the problem is not that Tax has increased, although any libertarian may be free to disagree with me. The problem is that GST has increased. GST is the most unfair, most regressive tax of all our major tax burdens (personal, corporate and GST). That means the poor pay the most as a fraction of their income.

And the reason they want to tax the poor is so they can implement the workfare scheme? Why don't they just not increase tax and the poor can have their money back? This is very very strange.

Anonymous said...

WTF?!! Milking the population to offset tax cuts for corporations??!!!

Anonymous said...

Timing is near perfect after GE.

Anonymous said...

LHL said that 7% GST is still lower than some countries GST/VAT. Very clear hint that more of this shit will come. I bet it'll be after the next election and MIW will shaft it up our behind by another 2% deeper.

You think it is painful now 66.6%? After the election, you have only witness the begining, there more to come in all manner and forms. Bite on something hard and brace yourself for the main thrust!

Anonymous said...

The MIW is throwing smoke again to try confuse us. MNC don't decide just on corporate tax to invest in a country. Does it mean that the PAP had failed in the other areas and rely only on corporate tax to attract them.

Anonymous said...

Tax the poor to help the poor.

Another 'Unqiuely Singapore' idea from the MIW.

Majullah MIW.

Anonymous said...

tax increase? where is all that profit from overseas investment?

Anonymous said...

stop winging about the poor. if the uneducated still produce dunces, the population should not be made to pay for them.

on a small island like singapore selective breeding is the answer.

Anonymous said...

To: anonymous 11/15/2006 10:16:55 PM

"stop winging about the poor. if the uneducated still produce dunces, the population should not be made to pay for them.

on a small island like singapore selective breeding is the answer."

.................


If you wish to make elitist and derogatory remarks about dunces and be hoity toity about it, do at least first learn to spell.

Winging?

Too funny.

Duh.

Boey K. Gian

Anonymous said...

Anonymous (11/15/2006 10:16:55 PM) is absolutely correct- selective breeding is the answer. We should start weeding out the idiots first, especially idiots that can't spell. On our small island we have no place for idiots that can't spell, such as morons that can't spell whining.

Anonymous said...

He is talking about himself. The uneducated parents of his have produced dunces like him.

Winging?! Hahahahaha...

Anonymous said...

http://mindbloggingstuff.blogspot.com/2006/11/its-payback-time.html

Anonymous said...

Yeah 7% is really killing the poor like myself. With increases in basic necessities, I am finding it hard to make ends meet. The government is insisting that this would boost the economy, I guess but at the expense of the lower and middle income. To me this 2% increase is actually a 45% jump off the original 5% GST.
And sometimes I really wonder whether other Singaporeans are getting a 45% increase pay increment a year so that they choose to remain silent. A two percent increase in my pay would certainly help.
Sometimes I really wonder whether the greater being out there is listening to the cries and sorrow of the poor.
When will they finally increase the CPF contribution for companies so that at least I can save in terms for my CPF retirement. Provided THEY don't come out with any Bright ideas to delay the withdrawal of CPF.
Soon the pressure cooker would be too much to bear, that in order to stop this rat race. I will choose to end it all.
When will the intelligent listen and finally do something?