The PAP government has cooked up yet another reason to raise GST by 2% post GE2020.
PAP seems to be certain that our economy will not be able to generate sufficient revenue to fund all the mega projects as well as the needs of an ageing population.
Why is PAP so certain that our economy is doomed between 2021 and 2025 – unable to generate sufficient revenue to cover increasing expenditure?
Although every Ah Kow or Ahmad knows that hiking GST rate is simply to raise revenue, PAP has been cooking up ridiculous justifications. A brief look at GST changes and how PAP has justified each increase since 1994.
1994: PAP introduced a 3% GST in 1994 to boost Singapore’s international competitiveness and for tax reform.
2003 and 2004: GST was increased by 1% each year to generate growth and create jobs.
2007: It was increased to 7% to help the poor, tackle ageing population issue and invest for our future.Some time between 2021 and 2025: To be increased to 9% because PAP is certain that there will be funding shortfall.
The general understanding is that our highest-paid politicians and civil servants plan light years ahead. Increased healthcare costs for an ageing population was anticipated at least 3 decades ago. Therefore, budget surpluses set aside and their returns – much higher in the 1980s and 1990s – should have already been allocated for their specific needs.
PAP has also told Singaporeans that “each generation should strive to pay for its own spending through sustainable means“. Then why is PAP still keeping returns earned from investing reserves during the last century?
Where mega projects are concerned, privatized PSA or CAG should be tapping capital markets for their funding needs as their future revenue will not benefit the present generation.
By burdening Singaporeans with another GST increase to help fund mega projects, PAP will again be socializing costs and privatizing profits.
The reason for increasing GST is obvious to even a layman. PAP doesn’t need to beat around the bush as we already know what it wants – money.
Since 1994, our international competitiveness has not been boosted by the introduction of GST. Instead, we are competing internationally by depressing wages (costs) through the mindless import of “foreign talents” from mostly third world countries.
Neither did increasing GST helped the poor since their numbers have increased.