Many people do not like to see the re-introduction of tariffs. They are afraid that it will lead to consumers paying higher prices.
They forgot that they are already paying higher prices through the goods and services tax (GST).
If the government can collect revenue from tariffs, they can abolish GST.
GST is a very bad tax. It is regressive (i.e. hit the low income people hardest) and the administration of GST is costly to the economy. I call it the "bits and pieces" tax.
Many countries can introduce tariffs to replace GST. Their tariffs can be on selected products. Food and medical supplies can be exempted. Higher taxes can be levied on cars, properties and luxury goods.
The tariffs also help to protect local industries and local jobs. The local manufacturers cannot run away from paying tax on their profits, unlike the multi-national corporations.
More importantly, the government will be able to collect enough revenue to pay for the public services, infrastructure and social welfare. They do not have to fund these expenses through debt.
The new world order, with lower inequality, will be safer and better.
What I have said does not apply to small economies, like Singapore. We need to join a larger economic community to survive in a new "tariff" environment.
Tan Kin Lian
They forgot that they are already paying higher prices through the goods and services tax (GST).
If the government can collect revenue from tariffs, they can abolish GST.
GST is a very bad tax. It is regressive (i.e. hit the low income people hardest) and the administration of GST is costly to the economy. I call it the "bits and pieces" tax.
Many countries can introduce tariffs to replace GST. Their tariffs can be on selected products. Food and medical supplies can be exempted. Higher taxes can be levied on cars, properties and luxury goods.
The tariffs also help to protect local industries and local jobs. The local manufacturers cannot run away from paying tax on their profits, unlike the multi-national corporations.
More importantly, the government will be able to collect enough revenue to pay for the public services, infrastructure and social welfare. They do not have to fund these expenses through debt.
The new world order, with lower inequality, will be safer and better.
What I have said does not apply to small economies, like Singapore. We need to join a larger economic community to survive in a new "tariff" environment.
Tan Kin Lian
1 comment:
LPPL.use reverse gear.singapore island produce what??what gst, old Poor people buy less things.how is Singapore build? Jurong.or noting.Maybe build a wall around Singapore??haha
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