03 Jul '11, 11pm

"The truth is that the poor spend a larger percentage of their income on basic necessities compared to the...

"The truth is that the poor spend a larger percentage of their income on basic necessities compared to the...

Why GST may be making our economy uncompetitive July 4, 2011 by admin Filed under: Current Affairs and Politics Written by Ng E-Jay 04 July 2011 The Goods and Services Tax (GST) in Singapore is a value-added tax that was implemented in 1994, at a starting rate of 3%. Over the years, the GST rate steadily increased, to reach 7% in 2007. Had the opposition not put pressure on the ruling party, the GST may well have reached 10% after the conclusion of the recent general elections. The government has argued that the usage of indirect taxation like GST allows personal income and corporate tax rates (direct taxation) to remain low, and this in turns keeps the economy competitive. Furthermore, the government has also argued that being a tax on consumption rather than on income, the GST encourages higher savings, which in turn leads to more available capital for productive investm...

Full article: http://www.sgpolitics.net/?p=6962

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