Someone asked me to explain how I can find replacement to the GST that I wish to abolish. I showed him the video of my speech about Budget 2018.
He said that it still does not explain how the lost revenue is to be replaced.
He argued that GST should not be abolished but should be reduced to 3%.
Here is my reply.
The main thrust of my speech is that we can do away with GST and still have a balanced budget by reducing the expenditure on infrastructure, which I consider to be excessive. We should also count the land sale as revenue, which is what Hong Kong has done.
If, after all of these actions are taken, there is still a revenue shortfall, we can increase the income tax rate on high income earners. I do not buy the reasoning that this will chase away the high income earners. Most of them (lawyers, doctors, corporate executives, ministers) earn their high salaries from Singapore.
I do not like to have a 3% GST, because the cost of administering GST is high. I do not agree that it can be solved by accounting software. There is still the recording of GST and the need to identify what is and is not subject to GST.
He said that it still does not explain how the lost revenue is to be replaced.
He argued that GST should not be abolished but should be reduced to 3%.
Here is my reply.
The main thrust of my speech is that we can do away with GST and still have a balanced budget by reducing the expenditure on infrastructure, which I consider to be excessive. We should also count the land sale as revenue, which is what Hong Kong has done.
If, after all of these actions are taken, there is still a revenue shortfall, we can increase the income tax rate on high income earners. I do not buy the reasoning that this will chase away the high income earners. Most of them (lawyers, doctors, corporate executives, ministers) earn their high salaries from Singapore.
I do not like to have a 3% GST, because the cost of administering GST is high. I do not agree that it can be solved by accounting software. There is still the recording of GST and the need to identify what is and is not subject to GST.
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