Excerpts from Channelnewsasia:
Second Finance Minister Lim Hwee Hua said the goods and services tax (GST) will not be reduced.
During the second reading of the GST Amendment Bill on Tuesday, Mrs Lim was asked by West Coast GRC MP Ho Geok Choo if the GST can be cut temporarily if economic conditions worsen.
Mrs Lim said a temporary cut is not desirable as it will result in more administrative costs due to the higher compliance.
“A two per cent GST cut would be less effective in helping the lower and middle income groups compared to the measures that were announced to help households in the Budget 2009 statement. A better way would be to target household assistance schemes at those who would require these assistance more.” – Lim Hwee Hua.
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“She said Britain made a two per cent cut in Value Added Tax but there was no perceivable effect in terms of an increase in consumer spending.
”
Lim, does Britain no effect = singapore no effect?
Is Singapore the same as Britain?
If no effect has Britain reversed their taxation?
When GST was increased to the current 7% , was there no more admin cost incurred based on what is reported below about what you said?
“Mrs Lim said a temporary cut is not desirable as it will result in more administrative costs due to the higher compliance. “
to me, at least, ANY cut in GST can stimulate spending.
Its only a matter of how much.
Eg. everyone needs to buy things.
If things are cheaper even by 1 %, this would have people buying more of it. Its only how much more. Eg. 1% of 10K is substantial.
Since when has PAP ever reduced the cost of living for lesser mortals????
GST will only increase….NEVER decrease.
I want GST CUT! Everday and everything we do in Singapore, we pay 7% to the Govenment! From using the computer(electricity) to eating to drinking to taking a dump (water). Everything requires you or someone else to pay 7% of what you do or use to the government.
She is smart..
She knows cutting of 2% GST will not translate to savings as most businesses in Singapore would not pass on the savings. We are talking about daily needs and necessities.
Example, dont expect reduction Bus Fares, MRT Fares, McDonald’s , KFC, Pizza Hut, Kopi ‘O’, Chicken Rice, Fried Rice etc..
Why is this so? Simple, there are flaws in the system lor.
they will mean what they said, GST will reach 2 digit sooner rather than latter.
Yeah, the cut will make re-establishment of the cut harder later.
The minister has missed the point completely.
A GST cut may or may not help the middle to lower income BUT it would be a signal from the govt to the people that the govt cares enough to implement such a cut!
But sigh, with ministers only using eyes and not their hearts to look at things, Lim Hwee Hua’s remarks are not surprising.
Lim Hwee Hua,
you are indeed the most stupid minister I EVER SEE IN MY LIFE. There is no excuse just because you are female, you are beyond stupidity. You know you arethe kind of stupid minister whose words give away the point you are making.
Mrs Lim said a temporary cut is not desirable as it will result in more administrative costs due to the higher compliance.
“A two per cent GST cut would be less effective in helping the lower and middle income groups compared to the measures that were announced to help households in the Budget 2009 statement. A better way would be to target household assistance schemes at those who would require these assistance more.” – Lim Hwee Hua.
Any person can see if there is something wrong with her statement and the contradiction ? Hint: What make GST cut less effective ?
So here it goes:
First she says there is no GST cut because it result in more administrative costs due to the higher compliance and thus become less effective compared to the measures of targeting household for helping. So it is the administrative cost that is the main issue (how stupid can she be to quote such a lame reason ? How come the reserve can immediately unlocked and there is no mention of administrative costs ? Oh I forget, the use of reserve for job credit scheme greatly benefit the GLC !) of not reducing GST.
Now I ask: Wouldn’t the target household assistance schemes will be just as ineffective because the more people seems help for such scheme, the higher the administrative cost ? If the administrative cost is a main concern, how effective can target household assistance scheme be then ? Isn’t the government find it more effective and efficient for them to just turn down more needy people and put more ridiculous criteria just to reduce administrative costs ? So what the motivation for the government to help the needy with these schemes which will increase in administrative costs ? (Please don’t even bullshit me that this government care and we have just to place blind trust on their “care” .)
So who are the fart you are trying to kid of effectiveness of target household assistance scheme compare to GST cut where all benefit from it ?
Please gahmen, stop your fart and nonsense. You keep increasing the cost and pass back those cost back to the citizen, and then tell them if any problem, come seek the gahmen ? Who are you try to con ? Stop the con-man scheme as Singaporean is not gullible anymore.
Look like some ministers’ brain grown on their ass.
“Mrs Lim said a temporary cut is not desirable as it will result in more administrative costs due to the higher compliance.”
In that case, just cut it permanently
when people are benefiting from it will they cut GST? greeed knows no limit….
““Mrs Lim said a temporary cut is not desirable as it will result in more administrative costs due to the higher compliance.”
Just cut it by 4% from 7% GSTsince benefit of 4% saving to the citizen will be much higher than 2%. Minister still want to complain about administrative costs then cut it it further.
If those clowns not be voted in next election, my prediction is that GST will increase to 10% GST (and oh !!!! The B**** will not even mention a single word on administrative costs as she will benefit as GST will boost GDP and thus her bonus and salary).
in britain the VAT rulins is so complicated, yet it is still today the finest TUNED to every situation.
for example you will not pay VAT if you take out your meals, you will only pay in dinin in
so ms lim please do not sprout rubbish if you don’t really studied throughouLEE before makin a simple comment here
are you a visitin tourist when you were in britain?
and yes till today the british LTA (same as singapore lta) already made transport concessions for the present gloomy economic situation, is singapoor doin anythinggie @ all?
Of course, the economy won’t worsen. We have the hordes of Chinese and Indian nationals driving up HDB prices to thank for. Step onto Orchard Road – does it feel like a recession, of course not, thanks to FT driving spending.
The ang moh FTs are thankful they can still find jobs here because if they went back to the UK, US, they’ll be unemployed. What a fantastic city-state this is. No wonder, more and more people are coming to this tiny red dot. While other places in the world are trying to keep out immigrants with red tape, a plethora of criteria and fences, we welcome them with open arms.
In addition, the government can claim credit for the recession that never was what with Jobs Credit and Spur. So, of course, there won’t be a GST cut. But expect GST to rise after an election cos that’s what happened the last time.
GST is introduced in 1994 when GCT is the PM.
Just a difference of S with C.
GST => Goh Suck Tong ?
Of course, he start the trend of sucking our Tong, who else ?
No GST cut because they prefer you to beg even though it is banned in Singapore.
1. Beg MPs during meet the people sessions.
2. Beg CDCs for hand-outs/jobs
3. Beg MYCS for social welfare payment
4. Beg NTUC for vouchers
5. Beg schools for pocket money
6.Beg HDB for rental flats and not to evict.
7. Beg Singapore Power not to cut power
hi Ram,
watch out for Big Bad Wolves!! :P
It seems like its either a GST cut or targetted assistance schemes. Why can’t both schemes be implemented together? A GST cut is a broad based measure and would benefit the masses and the targetted assistance scheme can be aimed at those who still fall behind. I’m sure every Singaporean is affected by the recession especially the lower and middle income groups.
Seemingly to prefer the targetted assistance scheme over GST cut because of administrative costs seems to imply the admin cost of the former can be controlled easily via selective assistance instead.
GST cut WILL HELP the financially challenged.
PERIOD.
GST cut may help the businesses and only by how much is the question.
So, my personal conclusion is GST cut is needful.
Lim Hwee Hua
Please cut your pay and your colleagues’ pay.
It’s already not helping lower and middle income with the current 7%. Since 2006 GST was raised from 5% to 7% with the same reason for helping needy people and they collected surplus taxes as a result of that. So what happen to that surplus money?
See that is the reason why I continue and still do not vote PAP because it has some how gone in a wrong direction with the way they handle public funds. Without our money, they are nothing. Without my vote, they are worthless.
So people, please don’t ever vote them again unless you don’t mind throw money at them.
MP Indejit pointed out right last time, the increment from 5% to 7% GST generates to an extra income of about 300M. And it was consumed completely by the ministers’, MPs’ and higher officers’ salary increment. Does any one keep this info ?
We have the world’s most expensive useless president, and here we are having the world’s first most expensive and useless female minister, and it is Singapore first.
How can lowering of GST NOT HELP? GST is an added-on tax; something you see on the receipt. If you’re a smart business, you would broadcast like the-end-of-the-world hysteria to let everyone knows that your store or business is passing on the reduced GST to customer and lowering prices for customers to buy more in your business. If you’re government or government-run business, of course you see NO effect on GST (strange to call it for-profit, business but government run). There lies the difference between a government that is smart and business-smart, and the true academia (and not pragmatic) who can’t hold down a private sector job to be a well-paid MP running the government.
last time when they increased GST they said it was to help the poor. So now economy worsen will they increase GST even further cos the poor has become poorer….?
To the pappies and lackey,
“karma will get you. Whatever you do to someone else will stay with you your entire life, and you will be paid back for your choices.”
A quote from certain site.
Yes, your selfish decision, your greed, your dishonesty, your betray of human mortality, your rubbish at the expense of citizens and humanity. No amount of praying to God and doing goodwill when karma comes will save the you. Karma will come, and I and the citizen will be waiting for that day.
“A better way would be to target household assistance schemes at those who would require these assistance more.”
oh yes, then the government can save more as well.
tax revenue – household assistance schemes (or transfer payments) = net tax earnings
obviously they get to earn more this way.
They implemented the Jobs Credit scheme and that must cost a lot in terms of administration. Yet the jobless rate increase. So is that effective or not? Maybe in Britain, the consumption numbers would have been worse had it not been for the cut?
I feel like I am being smoked..
Aljunied worst performers making her speech like this? One can easily tell why WP almost run over her in Aljunied GRC during the last election. Without her master’s support, Silvia Lim would have crushed her into pieces without needing much effort. Since she has been promoted being the worst among the worse, she will be up and running again to lick and polish up whatever her master abides her to do. Take her words for a huge tonnes of salt.
no GST cut but gov expect workers to cut their salary expectation and complain that singaporean are too choosy.
How can Britain be same as Singapore. For one, the pay between the two countries’ minister are already so much different.
They call it Great Britain but when it comes to salary comparison with SIN Gahmen, suddenly Great Britain becomes Peanut Britain.
To 20) Mic O Mic,
Eh…I do not think she qualifies as a bimbo.
PAP has not been helping the middle class for years. Not surprised at all.
She does not understand what regressive tax means. She probably thinks that the increase in spending on ordinary goods is minimal. Maybe she does not know that the percentage change in increase in spending on the same basket of goods comparing the rich to the poor will be different. Probably she does not know that I do not trust the money given to the gahman in the form of tax is going to use to help the lower income family. Probably she does not know that I believe the money taxed on us is used to fund the minister’s huge income. Probably she does not know that most of the time I feel nothing that comes out from her or her fellow colleagues’’ mouth will benefit the ordinary people of Singapore. I want to remind her that I am still watching. Her huge salary payout will not last long…
Thank you for giving us another new reason not to vote for the incumbent.
A (stupid) reason a day keeps PAP away.
Sigh… pls wake up, both sides. The current situation is not tenable.
when did we ever see them in reverse gear? After next election, GST would be 10%.
I’m not asking for 2% cut. I’m asking you to waive off 7% GST altogether. STUPID WOMAN!
9) Daniel on August 18th, 2009 11.15 pm ,
you are right! all this shit million dollars paid minister have no feeling for people at all. see how she created by just reading from scripts and worse than a robot.
maybe a robot still have some feeling. some thing is damn wrong about all these high ranking idiots…
16) Daniel on August 18th, 2009 11.41 pm ,
i agree with you. he is the starter of today cost rising and still going like no f**king business.
In fact when “GST” first implemented it is a replacement of the payroll tax of 2%. Argue by JBJ in the 80′s. They feel shame, quiet taken it off. In 1994 it came back in a form of GST. Made U people have been paying like fool!
Singaporean is Lee Ta Sar.
If you are poor, you need Not to pay Tax.
But if you are poor, you Have to pat GST.
With hugh Losses in Temasek Holdings (TH) & GIC etc, you think govt is gonna to cut GST???
S’pore govt has no idea how to generate $$$ & investment by TH & GIC have gone to DUST………
GST WILL Increase Again……cos useless PM said he needs to take his medicine now.
Sources: S’pore Tax will be made to pay monthly instead yearly. Before a worker gets the monthly salary, it will be Subjected to CPF & Tax……& of course not forgetting GST.
Regressive tax takes a larger percentage from low-income people than from high-income people.
After the election, the gst will definitely be raised to 10%.
This will definitely bring to the downfall of PAP. Right from the start, they are unable to substantiate their claims that they are doing it (increase GST) to benefit the poor. Nothing specific has been done to improve the welfare of the poor and needy after the tax increment. Yet they are refusing to adopt the humane approach of reducing the GST now when the economy is really bad and when Singaporeans realised that they have lost so much of our money.
So they are determined to ‘ying peng ying’ with the common people? Don’t continue with this bullying approach. It can’t win this time round.
To 45)
PAP will fall, that’s for sure, just dun know when … maybe another 10 years, or 20 years ?
What we should worry is that, when PAP falls, will our nation reserve disappear when the opposition take over the office? By then the Lee family could be well enjoying their overseas establishment, leaving pool of shit for the opposition to clear (think of Thaksin)
I used to earn above average pay.
Then the crisis.
I started all over with pay at $1200.
6 days work and always every holiday is working day.
I then realised how tough life can be here.
I have a car I cannot afford to put to Drive mode and park elsewhere.
Executives who are used to high paying jobs will not understand the plights of the low income workers of singapore.
Period.
This are the caliber of our ministers….great LHH and LSS can go hand in hand
“A two per cent GST cut would be less effective in helping the lower and middle income groups”
When the increase was first announced, our dear LHL and the people around it keep singing praises of how good it is and how they money will go to help the people…yet the bitter pills we took have no visible effect….did the surplus went to helping the people or went through TH and GIC and just…..you know what….
“household assistance schemes at those who would require these assistance more”
this schemes are targeted at a very niche group and i heard that it is hard to qualify for these schemes…such an easy way LHH, playing tai chi and pushing things away…furthermore, are those assistance scheme barely helping the people?
these ministers wants million dollar pay, but yet are unwilling to help the people
How could you say like that Yamamoto,
ITS THE PEOPLE WHO ENTRUST THEM TO DO WHAT THEY ARE DOING ie. work as politicians and run the country.
these types of bureaucracy cannot go on forever !
aiyoyo! send ur elderlys to jb nursing homes, no cheap fares for the elderly, we need FTs to make us clever, now we have this minister telling us no gst cuts even if economy worsens? c liao, we r all c liao! and this is the type of people we have in power, who are supposed to look out for us?
assistance schemes? have they any idea just how piah say some people are having to go begging for assistance? a small reduction in gst goes a long way for some of us, madam minister….would u like ur own parents to go begging for assistance, or would u rather they pay less for basic necessities with a reduced gst, and being spared having to feel piah say n loss of dignity having to extend their hands out for assistance? have some compassion, please, that is all we ask of u, have some compassion!