PAP to start GST ‘awareness’ with another hike?

PAP has run out of ideas to generate economic growth and has instead embarked on an ‘awareness’ campaign to generate revenue.

These jiak liao bees are aware that they have at least 2 more good years ahead before the next GE to fleece Singaporeans and will not stop at increasing only water prices, car park charges and town council conservancy fees.

Today article, “Only a matter of time before GST goes up: Economist”, has already hinted at PAP’s intention and is preparing the public for another surprise. link Recall that about a month before water prices were arbitrarily increased, Minister Vivian Balakrishnan had also sounded a warning of “significant risk’’ of losing an important source of our water supply.


Today

But this time round, PAP has decided to use an economist – in Singapore all are PAP-friendly ones – to prep the ground. The “economist” in this case is none other than CIMB’s Song Seng Wun.

Star economist Song Seng Wun

MSM have published Song’s positive comments on Temasek and GIC in too many articles. Because Song’s views are aligned with PAP’s, a GST rate hike is likely. Google “Song Seng Wun Temasek Holdings GIC” to get to know this star economist.

Song on Temasek’s privatisation of SMRT: “Managing the transport system will be simpler.” Incompetence at the highest level at SMRT clearly didn’t matter to Song.

Why not privatise SIA, Keppel Corp and all other GLCs as managing them will also be simpler? Like PAP, Song also loves to talk cock, sing song.

Star economist on CNA

Song: “No one wants the tax to go up …. but at this point in time, we know the GST has to go up. I think the fact that we are finally charging a bit more for water after 17 years reflects that somebody forgot it hasn’t been done yet.” Wow! So clever hor.

Song must be an intelligent person so I am just wondering why PUB’s perpetually-increasing revenue – in tandem with an increasing population – suddenly seems non existent to him. PUB’s ‘loss’ is nothing but PAP intentionally allocating insufficient tax dollars and subsequently magnifying the ‘loss’ with a grant. Hmm …. is Song pretending to be a dumbass?

“No one wants the tax to go up” is another half truth because PAP does want taxes to increase to generate revenue because PAP does not know how to increase productivity.

A 30% water tax increase is not “a bit more” for ordinary citizens after taking into account recently-announced increase in town council conservancy fees and increased car park charges.

Car park charges recently increased by up to 26% in December 2016

But why should water prices be increased when infrastructure construction costs have already been borne by consumers/investors and tax dollars allocated in the budget?

Are consumers and businesses being fleeced and forced to pay for infrastructure construction to cater to a 7-million population?

Song: “The fact is that GST was raised 10 years ago and water tax was (raised) 17 years ago.” Song is suggesting that since water tax has been raised, a GST rate hike should follow suit because it is overdue. But where is the logic? What will be increased after a GST rate hike? Electricity tariff? What’s next?

PAP is a master at propaganda and all its moves are calculated. For Song’s flawed reasoning to be published in the MSM, it must have been given the green light by PAP and that the stage has been set for a GST increase. Our ‘Awareness’ campaign has begun.

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3 Responses to PAP to start GST ‘awareness’ with another hike?

  1. sinkie says:

    Both GST & water taxes are consumption-based i.e. the more you use/buy the more tax you pay. However there is a BIG difference.

    What people don’t seem to realise is that GST is based on percentage, whereas water taxes (and other similar taxes) are based on fixed amounts. Hence GST already has automatic built-in mechanism to account for inflation. I’m surprised that an economist like Song didn’t even mention this. The water tariff is fixed so it cannot account for inflation (unless govt increase it on regular basis which they didn’t do for 17 yrs). And although the water conservation tax is percentage based (currently 30% going to 40% and then 50% next year), but becoz the bulk of underlying water tax is the fixed quantum water tariff, it also remained relatively constant.

    As cost of goods & services increased over the years, so did the amount of GST collected. Even if the population had stayed the same, and everybody continued to buy the same amount of stuff as 20 years ago, GST will still increase year by year becoz of inflation.

    But now after the population has increased by almost 100%, more people & companies are eating & shitting than ever, everybody is spending more than ever before — PAP still says not enough leh… This is damn fishy. Either there is a huge black hole in the reserves or PAP is being incredibly greedy while being a world champion scrooge at the same time. If you look at the national budgets over the years, you’ll see that GST is one of the biggest revenue collection (usually 2nd or 3rd place after corporate taxes) and it has consistently increased over the years.

    Somebody should ask in parliament what has been the percentage growth in GST collected since it started until end-2016? What is the GST per capita today compared to previous years? I bet the performance will put the multi-million dollar mgmt & “investment experts” at GIC & Temasek to shame. BTW all these questions can be easily worked out using the annual budget statements, and population stats from Singstat, but important to ask in parliament for public airing.

    I suspect for a start PAP will amend the laws to impose GST on all goods & services purchased online. Not sure how, but I think they will go after “famous” local online companies first like Qoo10, Lazada, Zalora, etc. And then these companies passing on the costs to sellers & users of their online platforms, who in turn will pass on the costs to end customers. And having Customs use draconian measures to open up all overseas parcels to determine cost & charge GST (not just the self-declared or courier-declared >$300 that is being practiced today).

  2. Phillip Ang says:

    WP is reluctant to ask questions pertaining to finance despite this being PAP’s Achilles heel.
    2017 budget analysis shows a $2.5 billion increase in GST collection since 2011. If not for consumers switching to online purchase, this would have been much higher.
    With income taxes hardly increasing of in danger of falling, it is not inconceivable for the desperate PAP to impose GST on online purchases.

    • sinkie says:

      It’s already confirmed that taxes will be imposed on online purchases, 1 way or another. Heng already mentioned this in the Budget speech. Suspect it will be multi-pronged approach: (A) whack the local online platforms, (B) having courier companies be the middleman in computing & collecting GST on value of parcels, (C) mandatory inspection & application of GST for all in-coming parcels at Customs.

      BTW it was the imposition of all sorts of taxes without consultation and/or peoples discussion that prompted US to rebel & fight against their former colonial master UK 240 years ago. However chances of that happening here is -100%. Don’t even have the guts to vote against PAP.

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