Saturday, January 27, 2018

How about 0% GST?

I will be raising this point at Budget 2017 Forum.

What is the appropriate rate for GST?

It should be 0%. GST should be scrapped.

Can the government afford it?

Of course, according to IMF standard, the Singapore government runs a budget surplus of over $20 billion a year. This includes revenue from land sale.

If GST is scrapped, the government will still see a surplus.

Just imagine. If GST is scrapped, the country will enjoy the following benefit.

a) Cost of living will drop by 10% (7% from GST, 3% from wastage in computing GST, catching GST cheats, etc).

b) Cost of doing business will drop 3% - no need to account for GST, collect GST, deduct GST paid on purchases, etc.

c) No need to catch GST cheats - remember the case where some crooks were caught for the GST carousel scam? Sure, one was caught. How many of the scammers got away?

d) No need to have custom officers to harrass Singaporeans buying goods from Johor and having to pay $3 in GST - cost $100 to police it.

If there is no GST, the government should also be more product in the spending.

a) Do not spend $800,000 on a bin center.
b) Do not spend $195 million on new signal system for MRT and still have frequent breakdowns due to "signal fault".
c) Do not need to spend $X for year long RSAF celebrations.

Agree? Want to add more points to my speech?

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