Article:
Adapted from Straits Times, February 5
http://enewslink.asia1.com.sg/brsweb/read_4.brsw?this=result&QDT=1&QFLST=HD%3AHG%3APD&DB=ST%3ABT%4006-07&QSTR=%28%28GST%29%29.HD.&DTSTR=%28%28PD+%3E=+20060912%29+and+%28PD+%3C=+20070212%29%29&PSZ=10&MAXL=200&SUMY=2&HLT=0&LSTN=0&ID=000005773@ST07
As Singapore continues to develop as a nation, the government has announced that the GST will be raised from 5% to 7% with effect from February 15. The increased GST, or the government service tax, will go towards building up Singapore’s resources and improve the standard of living here.
After reading the article, I think that this increase will go a long way in developing Singapore. Minister of national development Mah Bow Tan has said that it will boost education, health care and infrastructure. All these will benefit Singapore greatly as we go into a new modern age. Education for one is extremely important, as it churns out top scholars who will be the leaders of Singapore as well as educate the low-wage minority so that they can step into better paying jobs. Singapore also has an ageing population, and the increased amount of GST which totals to about $1.5 billion will do a lot for healthcare and medical aspects. Pertaining to infrastructure, the funds will go out to build new facilities and roads. Most important is the circle line, which will maximize convenience in transportation from one place to another. With the circle line, Singaporeans will benefit greatly and our country would be very accessible. Another development project of great importance is the Integrated Resorts in Marina Bay and Sentosa. With the increased funds, the IRs can be build quicker. Tourism in Singapore will also be boosted as more tourists will come in to visit the IRs or the casino. From the government’s perspective, it will be beneficial, as in the long term, the change will work for the better for Singapore, propelling the nation to become more competitive and a bigger player in the world market. progress as a nation.
GST: the key to a better Singapore?
However, looking at another perspective, the income gap of Singapore is also getting wider. With the increased GST, low-wage workers might suffer instead. Although the government has promised rebates for those who suffer from the change, it might not be sufficient to ensure that the low-wage workers progress in social status instead of slipping further down in the social ladder due to the lack of money. I feel that this situation is rather precarious, as the lower-income groups will either improve or just break down. In the end, the irony might be that they suffer instead when the government planned for them to improve.In conclusion, I feel that in order for this to work out, Singaporeans have to cooperate with the government and trust that they are bringing Singapore forward. Frankly, no one likes the idea of having to pay more service tax when earning money is already so tough. However, think of the circle line, the integrated resorts, and a modern cosmopolitan Singapore, and you will agree with me. Even though it might be a struggle for the lower-income group to cope, as a nation, we should go through this together as one people, one nation, and look forward to greater benefits in the future.
Article:
Pub Date: 05/02/2007 Pub: ST Page: H6
Day: MondayEdition: FIRST
Headline: GST hike needed for growth: ministers
By: KRIST BOO
Page Heading: HOME Source: SPH
Mah Bow Tan to give details next week on how it will help build S’pore’sinfrastructure
NATIONAL Development Minister Mah Bow Tan intends to sketch out next week howpart of the revenue from the impending goods and services tax (GST) hike willgo towards building Singapore’s new roads, bridges and other keyinfrastructure.Speaking to reporters before entering a closed-door GST dialogue withgrassroots leaders yesterday, Mr Mah reiterated the Government’s stand that the2 percentage point tax hike will also boost education, health care andinfrastructure, besides being used to give low-wage workers a leg up.On his next week’s announcement, he said: “I am going to talk about some of thethings we need to do in order to put Singapore in a position to capitalise onthe opportunities in the future.”The 5 per cent tax is scheduled to be raised to 7 per cent after Feb15, whenthe Finance Ministry unveils the new national Budget.Mr Mah was not the only minister out on the ground to drive home the “GST hikefor future growth” message.At another community event, Defence Minister Teo Chee Hean told reporters thatSingaporeans should not think of the tax as “just a (fund) transfer exercise”.It is an opportunity to move Singapore into a more competitive spot.The extra GST revenue will add $1.5 billion to Singapore’s coffers annually.Part of that would fund, for example, education, health care, transportationand a more attractive business tax structure designed to lure investments.Mr Teo said: “It’s not just a matter of transfers, but how to grow the pie, sothat we can be more prosperous.”Both ministers stressed that the Government will cushion the impact of theincrease.Rebates and reliefs will be handed out to lessen the hike pain on the lower andmiddle income groups.With the income gap widening in Singapore, there is “a greater sense ofanxiety” among the low-salaried in this round of GST hike compared to the lastone – a staggered increase – in 2003, Mr Mah conceded.The Government’s plan is that through education, children of low-income workerswould later go on to higher-salaried jobs.Through job re-training, low-wage workers would step into better payingpositions.“All these things require resources,” he pointed out.Closing the doors to low-wage foreign workers, or imposing a minimum wage,would not work, and the Government has explained why, he said.Some of the GST revenue will be channelled into health care, a pressing issuewith Singapore’s ageing population.As of now, many Singaporeans do not have enough funds in their public healthinsurance account, Medisave.The Government wants to “incentivise” this group, some of them self-employed,to top up their accounts, he said.There have been calls to keep basic necessities exempted from the hike, butthat would not be feasible.Mr Mah said: “The moment you exempt something from the hike, you have a hardtime trying to draw the line.”Instead of exempting the less well-off from spending more, the answer is to“supplement their income”, he said.
ADDITIONAL REPORTINGBY CHUA HIAN HOU
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