PAP doesn’t need to cook up another reason for unjustified GST hike

The PAP government has cooked up yet another reason to raise GST by 2% post GE2020.

PAP seems to be certain that our economy will not be able to generate sufficient revenue to fund all the mega projects as well as the needs of an ageing population.

Why is PAP so certain that our economy is doomed between 2021 and 2025 – unable to generate sufficient revenue to cover increasing expenditure?

Although every Ah Kow or Ahmad knows that hiking GST rate is simply to raise revenue, PAP has been cooking up ridiculous justifications.  A brief look at GST changes and how PAP has justified each increase since 1994.

1994: PAP introduced a 3% GST in 1994 to boost Singapore’s international competitiveness and for tax reform.

The general understanding is that our highest-paid politicians and civil servants plan light years ahead.  Increased healthcare costs for an ageing population was anticipated at least 3 decades ago.  Therefore, budget surpluses set aside and their returns – much higher in the 1980s and 1990s – should have already been allocated for their specific needs.

PAP has also told Singaporeans that “each generation should strive to pay for its own spending through sustainable means“.  Then why is PAP still keeping returns earned from investing reserves during the last century?

Where mega projects are concerned, privatized PSA or CAG should be tapping capital markets for their funding needs as their future revenue will not benefit the present generation.

By burdening Singaporeans with another GST increase to help fund mega projects, PAP will again be socializing costs and privatizing profits.

The reason for increasing GST is obvious to even a layman.  PAP doesn’t need to beat around the bush as we already know what it wants – money.

PS
Since 1994, our international competitiveness has not been boosted by the introduction of GST.  Instead, we are competing internationally by depressing wages (costs) through the mindless import of “foreign talents” from mostly third world countries.

Neither did increasing GST helped the poor since their numbers have increased.

 

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

 

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10 Responses to “PAP doesn’t need to cook up another reason for unjustified GST hike”

  • The Rot Started From The Top:

    The real reason can only be known, when the whole society had truly found out that this regime is indeed a scam party, and many times, applying cheating tactic to deceive citizens, all for their own interest. We all had contributed to the trillions into the Reserve Fund, but none of us will ever know how much had been depleted by the FamiLee. The truth can be known if all whom had been deceived can work towards putting all our efforts to those whom had the capabilities and confidence to unearth the whole truth. Let’s work that day, true blue Singaporeans.

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  • GST increase not justified:

    Well Said GST increase is not justified at all, with the additional money collected year after year, how much was really spend on its people where it is collecting GST year after year, healthcare infrastucture and security where we have budget surplus?? It is time to really tell us further and break down further on our P & L just like corporation does to justify for GST increase. We are not stupid are we?

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  • oxygen:

    ANOTHER BRILLIANT PIECE OF INFORMATIVE RESEARCH from this insightful blogger – thanks for sharing.

    Shifting a tax from an income-based system to a consumption-based system failed to boost LEE-jiapore competitiveness failed. Without income, where to fund the consumption and expand the GST (AKA GET SINGAPORE THINKING) receipt EXCEPT VIA INCREASING ITS POPULATION BASE?

    Population driven economics is the most expensive and lethargic pathway to growing the economy. Why? Because human capital consumes nearly as much as we earn on food, housing, education and healthcare. Innovation, capital and entrepreneurial pursuits which is the basis of driving income are self-multiplying – none of these what economists call factors of production consumes (its own capital) food, shelter, education and healthcare and therefore is the FASTER PATHWAY TO ECONOMIC DEVELOPMENT. Population economics is therefore a drag on economic growth as a lot of money has to be spend on infrastructure and social overheads (such as estate cleaning, creation of parking space, green space, spending on pollution control, pests infestation etc etc). There is a threshold and point of inflexion when population economics driving a consumption-based tax regime becomes negative of net contribution to economy in the absence or declining contribution of receipts from income-based tax regime.

    LEE-jiapore has past this point. GST has to rise faster and faster and corporate tax and personal income base slows. WE ARE IN TROUBLE – population economics is yielding NEGATIVE RETURNS – PAPpynomics is now stuck in a hole and the PAPpys are digging more rigorously and faster to sink deeper. Tharman correctly told a conference in New Dehli last year – population economics is BOTH POLITICALLY AND ECONOMICALLY STUPID. He is dead right on the dot.

    The fear now we are living is corporate and personal income – the latter is dependent on the former – collapses and only way to fund social, healthcare and public infrastructure via the GST route climbing faster and faster. Every increase is permanent and CUMULATIVE of its base unlike corporate and personal income tax can be cut.

    How can peasants survive when GST escalates and PAPpys failed of it economic model of dependency on foreign capital -NEGLECTING THE DEVELOPMENT OF ITS DOWN DOMESTIC ECONOMIC PILLAR and our politically-sheltered GLCs run by PAPpy cronies are failed enterprise outside this little red dot. NOL is a good example. Keppel experience in Brazil is a rotten shame. We have no domestic technology base to move up the global economic ladder. Our neighbors are getting a lot smarter now.

    LEE-jia is in trouble and tax peasants to death.

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  • Ah Long And The 81 Thieves.:

    Those PAP daylight robbers, think they are God, can see the world economy in distress in few years time, and tried to deceive us that they are now upping the GST to meet that event. Are they really God? Most can agree with me that they are devils in disguise. Chances are, the Dishonourable Son and his wife Is in deep shit, and the increased money is for their purpose. Right now, nobody knows the depth of depreciation in the Fund. No transparency, in their dealing can lead to all kinds of cheating scenarios.

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  • Mainstreet Citizen:

    Key question at the next G.E. “Why should people continue to vote in the highest paid government in the world whose solution to help people is to make people pay and pay?”

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  • Integrity And Trust ?:

    Why should the public trust Ah Loong Baba and the 80 thieves when they denied knowledge about the Keppel Bribery case, big investment losses, screwed up diplomacy with USA and China resulting in damage to our economy and stealing money from the public via GST increase and enriching themselves when the public is suffering ?

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  • NotMyProblem:

    Mainstreet Citizen:
    Key question at the next G.E. “Why should people continue to vote in the highest paid government in the world whose solution to help people is to make people pay and pay?”

    These may answer your question;

    Dumb politicians are not the problem, the problem is the dumb people that keep voting for them.

    Stupidity has no limit. There is no cure in stupidity.

    Normal robber chooses his victim and robs discreetly. But SG elected his robbers and handover the money in broad daylight. Normal robber avoids police. But our elected robbers have police on their side. SG even thank the robbers for returning the emptied money back.

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  • opposition dude:

    PAP is always good for coming up with stupid excuses ranging from being misquoted/quoted out of context or even saying that Bishan Park will be flooded when it rains. Bravo!

    The next GE is still a bit away and I hope that voters remember costs of water, S&CC charges and others have gone up. GST comes in after the next GE. Looks like we need a lot more of the 70% to vote opposition but how many will do so remains to be seen.

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  • PAP sure win next GE meh?:

    Clear sign of being arrogant!

    Singaporeans will want to deliver surprises too!

    Let’s vote them out!

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