...A government spokesman has said that if the public want free buses and MRTs that it would cost a 1.5% raise in GST. I presume this was said to convince people NOT to ask for such a thing...yet, pause for awhile. What does a 1.5% tax on spending mean for Singaporeans? Well, that depends if you are a big spender or not.
If you are relatively poor and your family spends 1000 dollars a month on GST liable items, your GST payment is 15 dollars. Yet, if one family member takes two journeys at 1.50 dollars each, that would amount to 3 dollars a day - or 90 dollars a month. Thus, this person of modest means would save 75 dollars a month, from this initiative. What if this consists of a typical Singaporean family (two parents, one child)...well, that would be a saving of 7.10 dollars a day or 213 dollars a month - minus 15 dollars, which would equal 198 dollars not spent. That is a HUGE increase in the effective income of this poor family... boywhoknewtoomuch
Wednesday, December 24, 2008
at 2:40 PM