Here is the reply from IRAS to my suggestion on GST
http://www.todayonline.com/Voices/EDC120223-0000069/GST-mechanism-can-work-for-small-firms
I have posted this comment in the TodayOnline website:
http://www.todayonline.com/Voices/EDC120223-0000069/GST-mechanism-can-work-for-small-firms
I have posted this comment in the TodayOnline website:
I thank Claire Chua for giving me a reply, although I am somewhat disappointed with the reply. I suggest that Claire Chua gets her colleague, who is the GST expert, to contact me by email (kinlian@gmail.com) and engage in a discussion with me. A discussion has to be two way.I found her e-mail address from the Singapore Government Directory and sent this message to her:
In her reply, Claire Chua has missed these three important points:
1. If the Finance Minister is giving $5,000 to help small companies, why not give the small advantage suggested by me, as the cost to the government is small and the impact to the small business is large.
2. Businesses have to keep a separate record of the GST inputs and outputs and have to show the amount separately in the tax invoices. The administrative cost is quite significant. I know, as I am involved in the work.
3. A small company supplying goods and services to a GST registered company has to reduce the price to remain competitive, and they have already incurred the GST on their inputs, which they cannot claim back. This is a serious disadvantage that compel small companies to register for GST, when they do not have to, and to incur the cost of compliance. Even IRAS finds it a nuisance to handle these small companies - based on the "body language" shown in their processes. [Tan Kin Lian]
I invite you to ask your colleague (GST expert) to call me at 66599611 or reply to me by email to have a discussion on this matter. Do not just give a reply without understanding the issue that has been brought up.
This GST is not fair to the lower and middle classes, and also to small businesses, the latter having to spend money and time on the admin costs for submission.
ReplyDeleteUpon implementation of this tax, the Govt said the proceeds will benefit the poor, but it took a decade or so for Govt to agree to give GST offsets to help the poor, all those tax receipts in earlier past years went gleeing into the national coffers.
Of course, the rich and wealthy individuals and Corporations love this GST to death, as they are rewarded with very low income and Company taxes as a trade off.