Hi,
GST hike is good for the country. It has a important purpose. We the Aryan Race of Singapore volunteered to run Singapore for a Little salary and yet you guys are making so much noise over such little amount.
This is truly outrageous. With out us running the Nation. You be working in Indonesia as a Miner and women be maid in Saudi Arabia
https://www.channelnewsasia.com/new...t-purpose-heng-swee-keat-budget-forum-9978148
In response to Channel NewsAsia’s question on whether the larger-than-expected Budget surplus for financial year 2017 made the GST hike a tougher sell, Mr Heng replied: “It certainly has made the job of explaining it more difficult, but it is very important for all of us to bear in mind that the surplus we had last year is not likely to be repeated again and again.”
Singapore is expecting a bumper surplus of S$9.6 billion for the year ending March 31, thanks to “exceptional” statutory board contributions, primarily from the MAS, and higher stamp duty collections due to the recent boom in property transactions.
Mr Heng emphasised that this large contribution from the MAS, due to higher investment returns and gains from currency fluctuations, is not a “structural feature”.
Hence, long-term planning for the country will need to done on "more structural factors", such as the rise in spending needs.
But Mr Heng stressed that when the GST hike is implemented, there will be efforts to make sure it remains “progressive” with the roll-out of a “good offset package”, particularly for the lower- and middle-income households.
The timing of the GST increase will also be chosen carefully, with various factors to assess including the state of the economy, changes in the country's expenditure patterns and the global environment.
Mr Heng said he hopes that the economy continues to grow. "If we are in a deep recession or if there’s a global financial crisis again, then we have to redo our sums to see what else we need to do,” he added.
Nonetheless, current projections show that the 2 percentage point hike is the “appropriate rate for us to go”, he said, given that it would translate into revenues amounting to 0.7 per cent of gross domestic product (GDP) every year.
“I’m not saying that that itself will be sufficient (because) how our healthcare cost would grow, we cannot predict with certainty,” he said.
“But as far as the GST is concerned, looking at our current projections and trends, 2 percentage point is likely to be the right one.”
Even for businesses, the “very advance notice” given by the Government, which Mr Heng admitted to be “quite exceptional”, will help them to adjust to the planned increase in GST.
IMPORTANT TO DO THE RIGHT THING: HENG SWEE KEAT
Some observers have also raised the political risk that the ruling People’s Action Party is taking with the GST hike.
In 2015, then Finance Minister Tharman Shanmugaratnam stated that the revenue measures the Government had undertaken would provide sufficiently for increased spending planned until the end of the decade.
Prime Minister Lee Hsien Loong reiterated at the PAP convention on Nov 19 that “for this current term of government, we have enough revenue”.
That remains correct based on the Government’s projections, Mr Heng said.
“If it was a wrong assessment, we would be prepared to say so but it is not. It is the correct assessment that we are in good position right until at least 2020 but beyond that, we know that there are so many new areas of expenditure that we will need.
On whether he was worried that the opposition could campaign on this issue at the next General Election, he said:“Those of us in positions of responsibility must act responsibly and therefore the way to act responsibly is when we know that this is the right thing to do, we must have the courage to do it and not make narrow personal calculations.
Read more at https://www.channelnewsasia.com/new...t-purpose-heng-swee-keat-budget-forum-9978148
GST hike is good for the country. It has a important purpose. We the Aryan Race of Singapore volunteered to run Singapore for a Little salary and yet you guys are making so much noise over such little amount.
This is truly outrageous. With out us running the Nation. You be working in Indonesia as a Miner and women be maid in Saudi Arabia
https://www.channelnewsasia.com/new...t-purpose-heng-swee-keat-budget-forum-9978148
In response to Channel NewsAsia’s question on whether the larger-than-expected Budget surplus for financial year 2017 made the GST hike a tougher sell, Mr Heng replied: “It certainly has made the job of explaining it more difficult, but it is very important for all of us to bear in mind that the surplus we had last year is not likely to be repeated again and again.”
Singapore is expecting a bumper surplus of S$9.6 billion for the year ending March 31, thanks to “exceptional” statutory board contributions, primarily from the MAS, and higher stamp duty collections due to the recent boom in property transactions.
Mr Heng emphasised that this large contribution from the MAS, due to higher investment returns and gains from currency fluctuations, is not a “structural feature”.
Hence, long-term planning for the country will need to done on "more structural factors", such as the rise in spending needs.
But Mr Heng stressed that when the GST hike is implemented, there will be efforts to make sure it remains “progressive” with the roll-out of a “good offset package”, particularly for the lower- and middle-income households.
The timing of the GST increase will also be chosen carefully, with various factors to assess including the state of the economy, changes in the country's expenditure patterns and the global environment.
Mr Heng said he hopes that the economy continues to grow. "If we are in a deep recession or if there’s a global financial crisis again, then we have to redo our sums to see what else we need to do,” he added.
Nonetheless, current projections show that the 2 percentage point hike is the “appropriate rate for us to go”, he said, given that it would translate into revenues amounting to 0.7 per cent of gross domestic product (GDP) every year.
“I’m not saying that that itself will be sufficient (because) how our healthcare cost would grow, we cannot predict with certainty,” he said.
“But as far as the GST is concerned, looking at our current projections and trends, 2 percentage point is likely to be the right one.”
Even for businesses, the “very advance notice” given by the Government, which Mr Heng admitted to be “quite exceptional”, will help them to adjust to the planned increase in GST.
IMPORTANT TO DO THE RIGHT THING: HENG SWEE KEAT
Some observers have also raised the political risk that the ruling People’s Action Party is taking with the GST hike.
In 2015, then Finance Minister Tharman Shanmugaratnam stated that the revenue measures the Government had undertaken would provide sufficiently for increased spending planned until the end of the decade.
Prime Minister Lee Hsien Loong reiterated at the PAP convention on Nov 19 that “for this current term of government, we have enough revenue”.
That remains correct based on the Government’s projections, Mr Heng said.
“If it was a wrong assessment, we would be prepared to say so but it is not. It is the correct assessment that we are in good position right until at least 2020 but beyond that, we know that there are so many new areas of expenditure that we will need.
On whether he was worried that the opposition could campaign on this issue at the next General Election, he said:“Those of us in positions of responsibility must act responsibly and therefore the way to act responsibly is when we know that this is the right thing to do, we must have the courage to do it and not make narrow personal calculations.
Read more at https://www.channelnewsasia.com/new...t-purpose-heng-swee-keat-budget-forum-9978148
